Insurance Technology Featured Article

Deloitte Issues 2013 Forecast for Challenge, Strategies for Insurer Growth

January 14, 2013

Delioitte has released its 2013 report, “2012 Global Insurance Outlook Generating growth in a challenging economy takes operational excellence and innovation,” with several interesting recaps of 2012 and forecasts for 2013.

Deloitte (News - Alert) says while the economy will continue to challenge insurers, companies should identify growth sectors and ‘piggyback’ off of them,” according to a piece that summarizes the Deliotte paper. “[Further], Insurers can take advantage of opportunities from rebounding auto sales, greater construction, and millions of new insureds brought into the healthcare market due to the Patient Protection and Affordable Care Act. Overseas as well, a growing middle class in China, India and Brazil are creating new market opportunities.”

With regard to investment strategies for the 2013 fiscal year, the report reminds interested parties that the Federal Reserve plans on holding interest rates at low levels through mid-2015.

Nevertheless, Deloitte predicts insurers will become “more aggressive” in their investment approaches in every area, but especially hedge funds, oil and gas assets, and real estate.

The report has some significant final conclusions for targeted industry insiders, but ends with rather ambiguous language:

“It’s relatively easy to identify the challenges facing insurance carriers and their distributors, but it’s a lot harder to determine how an individual insurer should respond,” it said. “Each course of action has its own risks and rewards, but perhaps the one certainty is that doing nothing is rarely an option. Even carriers that consider themselves successful under their own version of the status quo should evaluate the potential vulnerabilities of their business models in a rapidly evolving economy and insurance marketplace. For now, senior executives at least should begin assessing how the challenges raised in this report are likely to affect their ability to generate growth and profitability.”

“Each issue is both a threat as well as a potential opportunity, depending on how a particular carrier chooses to address the challenge,” the piece held.

In its final analysis, Deloitte advises firms that keep product design and technology at the forefront of the business model will enable insurers to more easily identify the needs of their customer, both in their base as well as untapped markets.

Insurance innovation in evolving arenas will soon find effective approaches to addressing cybercrime, political unrest, and new market realization and discovery.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.




Edited by Braden Becker

Article comments powered by Disqus

Related Insurance Technology Articles

QuoteWizard Increases Engagement Rates and Improves Lead Quality with Conversica

Sometimes we make the business of business seem overly complicated. After all, at a high level business is about getting leads, closing deals and keeping existing customers happy. And, it is about doing so efficiently, effectively and profitably. In this context, the two items about efficiency and effectiveness are the drivers of why there is such intense interest in technologies that automate workflows and business processes from the back office to customer facing capabilities. [ Read More ]
01/14/2015

Alfa Insurance Partners with Cigniti Technologies

There is an old saying in the U.S. that is a bit coarse but makes the point and goes as follows: "Put your money where your mouth is." In a much less blunt and very positive way Alfa Mutual Insurance Co. is doing just that. It is investing in the quality of its mission critical software by partnering with Dallas,TX-based Cigniti Technologies , the world's third largest software testing company, to establish a dedicated Test Center of Excellence (TCoE). [ Read More ]
01/14/2015

Intellect SEEC Forms Partnership with OutsideIQ to Improve Insurance Risk Analytics

If there is one question insurance underwriters continually ask themselves is, how effectively are they assessing and pricing risk? This of course is a very complicated question, requiring the analysis of massive amounts of data about the particular asset the company is willing to insure. The evolution of information and communication technologies has allowed the world we live in to generate actionable insights from readily available data to make informed decisions about a myriad of subjects, an… [ Read More ]
01/14/2015

Sapiens Unveils Core Upgrade to its General Insurance/P&C Suite

In the past several months there have been a series of reports and articles written about how technology is rapidly disrupting all aspects of the way in which insurance is provided, claims are handled and customer are engaged. While all of the things going on with the disruptions caused by the advent of the "connected car" are grabbing the headlines, there is hardly an insurance line-of-business that is going untouched. And, as the postings have pointed out, and industry observers have recommend… [ Read More ]
01/09/2015
FREE Insurance Technology enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!