乐鱼（Leyu）体育官网

Commercial insurance industry under growing pressure from economic uncertainty, ESG activism and deglobalization

乐鱼（Leyu）体育官网 report reveals rapidly changing landscape, despite strong market conditions

听

A new report from 乐鱼（Leyu）体育官网 has revealed the world鈥檚 commercial insurance industry is performing well but faces a number of increasing pressures that threaten its long-term sustainability.

乐鱼（Leyu）体育官网鈥檚 Future of Large Commercial Insurance听report was compiled following extensive interviews and research with more than 400 industry leaders throughout the world. The report highlights five critical 鈥榮ignals of change鈥� that are already impacting the sector and could radically reshape the industry in the future. These are:

  • Client and broker expectations
  • Economic uncertainty
  • Regulatory and legal deglobalization
  • Technology evolution
  • Environmental, social and governance (ESG) activism

The global commercial insurance industry is predicted to continue its growth trajectory over the next decade, with estimates suggesting the worldwide sector could generate revenues of more than $661 million by 2028, compared to $349 million in 20201. But, despite the positive financial outlook, there are fears growing external challenges could bring the industry鈥檚 success to a halt, if decisive action isn鈥檛 taken now by CEOs and other sector leaders.

The business landscape is changing rapidly. Despite strong market performance, traditional commercial insurance business models are coming under pressure from swirling changes that now have the sector on the cusp of a radical transformation. To survive and thrive in this new environment, commercial insurers shouldn鈥檛 stand still. They need to evolve and build new differentiated capabilities that connect across the organization. Technology will be critical, but digital transformation goes well beyond technology. Insurers need a clear, client-led business design of their end-to-end process that should be driven by deep client, broker and market insights. It should be underpinned by a digitally-enabled technology architecture and empowered workforce. In our view, it is only by taking this 鈥渃onnected鈥� approach that insurers can achieve true value from their digital transformations.

Laura Hay

Global Head of Insurance

乐鱼（Leyu）体育官网 International

乐鱼（Leyu）体育官网鈥檚 findings highlight the need for the industry to rapidly evolve and address growing threats before they hamper progress in the sector. The report identifies three new business models for the businesses that emerge as 鈥榳inners鈥� in the long-term. They are:

  • Agile global player 鈥� optimizing the existing
  • Innovative specialist 鈥� adapting and exploiting at pace
  • Open-source risk manager 鈥� stock market of risk
To help ensure these winning business models will be successful, commercial insurers should focus on building new and differentiated capabilities that connect across their organizations. While leaders can鈥檛 do everything, they should identify which capabilities and models will help make the biggest difference to their business. Technology will be critical. But digital transformation goes well beyond technology. A clear, client-led business design of end-to-end processes is essential. It should be driven by deep client, broker and market insights. And it should be underpinned by a digitally-enabled technology architecture and empowered workforce. In our view, it is only by taking this 鈥渃onnected鈥� approach that insurers can achieve true value from their digital transformations.

Mark Longworth

Global Head of Insurance Advisory

乐鱼（Leyu）体育官网 in the UK

For media queries, please contact:

Brian O鈥橬eill,
Senior Manager,
Global External Communications


T: +44 7823 668689
E: Brian.O鈥橬eill@kpmg.co.uk

About 乐鱼（Leyu）体育官网 International

乐鱼（Leyu）体育官网 is a global organization of independent professional services firms providing Audit, Tax and Advisory services. 乐鱼（Leyu）体育官网 is the brand under which the member firms of 乐鱼（Leyu）体育官网 International Limited (鈥溊钟悖↙eyu）体育官网 International鈥�) operate and provide professional services. 鈥溊钟悖↙eyu）体育官网鈥� is used to refer to individual member firms within the 乐鱼（Leyu）体育官网 organization or to one or more member firms collectively.

乐鱼（Leyu）体育官网 firms operate in 144 countries and territories with more than 236,000 partners and employees working in member firms around the world. Each 乐鱼（Leyu）体育官网 firm is a legally distinct and separate entity and describes itself as such. Each 乐鱼（Leyu）体育官网 member firm is responsible for its own obligations and liabilities.

乐鱼（Leyu）体育官网 International Limited is a private English company limited by guarantee. 乐鱼（Leyu）体育官网 International Limited and its related entities do not provide services to clients.

For more detail about our structure please visit:听

Footnote :
1听Data from听

Mark Longworth
Mark Longworth

Global Insurance Advisory Lead and Partner

乐鱼（Leyu）体育官网 in China