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

Mercury Insurance Selects OnBase for Process Automation and Paperless Workflow

One of the greatest benefits of digital technology is it allows businesses to eliminate processes and methodologies that in the past slowed growth and made up a considerable percentage of the overall operational cost of the organization. While paper has served civilization very well, and still continues to do so to this day, for large organizations it is a technology that can be described as slowing down the workflow of a company to a tortoise pace compared to digital solutions. [ Read More ]
10/30/2014

Insurance Industry Focusing More on Customer Satisfaction

Like any other industry, customer satisfaction matters a great deal in the insurance sector. Various studies conducted have proven beyond any doubt that a satisfied customer is the best advertisement for an insurance company. [ Read More ]
10/29/2014

Parents Choose Doctors for Children Based on Online Ratings

New research recently published in the Pediatrics journal shows that the online reputation of a healthcare provider may be just as important or even more so as its real-life one. [ Read More ]
10/28/2014

Auto Insurance Telematics Poised for Explosive Growth

Smart cars are getting smarter and have become foundational elements of our increasingly connected world. The data they generate pertaining to things like driver habits, the car condition and adherence to maintenance best practices, where the car is driven, where it calls home, etc. are all critical in determining insurance premiums. In fact, they are what will enable insurers the ability to reward customers who are good drivers and good owners while charging higher rates for those who are less … [ Read More ]
10/23/2014
FREE Insurance Technology enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!