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

Bain & Company Offers Global Insurance Customer Loyalty, 2014

Bain & Company, a business consulting firm, has presented report on "Global Insurance Customer Loyalty, 2014". The new comprehensive customer survey and report includes opinions of 158,000 policyholders in 18 countries in Europe, the Americas and Asia. [ Read More ]
07/24/2014

Insurance Noodle Offers Cyber Liability Coverage

Everyone knows about home, auto, and life insurance; they are staples of everyday life that most people have and some cannot imagine going without. Businesses, too, have insurance packages that protect their buildings and other material possessions. In a time when technological possessions are growing in number and importance, though, are businesses adequately covering those assets as well? [ Read More ]
07/23/2014

Mitchell Enhances WorkCenter Solution with New Dispatch Tools

Mitchell, a company serving Property & Casualty (P&C) claims and Collision Repair industries with its technology, connectivity and information solutions, has announced that it has included new enhancements to the Dispatch module of the WorkCenter claims management solution. [ Read More ]
07/22/2014

Oscar Gives Millenials the Healthcare They Want

The "young invincibles" of the millennial generation may finally be courted by the healthcare industry, thanks in part to the health insurance provider Oscar. [ Read More ]
07/17/2014
FREE Insurance Technology enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!