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

Wolters Kluwer UK Selects Vlocity Insurance to Enhance Online Customer Experience

For several months the buzz around the insurance industry has been that insurers should have a sense of urgency about investing in technology, specifically those that enhance the customer experience-or suffer what some observers believe will be dire consequences for those who continue to be laggards. The message seems to be resonating as indicated by the announcement that cloud software solutions specialists, San Francisco, California-based Vlocity Inc., has been selected by the U.K. division of… [ Read More ]
05/21/2015

Flowfinity Partners with Marshall & Stevens on Improving Efficiency

While most companies believe that moving to digital services and mobile applications helps efficiency, there is now a new report that seems to underline that fact. Flowfinity Wireless, already a proven provider of enterprise mobile applications recently released a new case study that showed just how much this efficiency can be improved. This new report centered on the valuation consultancy firm, Marshall & Stevens. This firm took measures such as replacing scanned notes with mobile apps, which r… [ Read More ]
05/18/2015

Zenefits Fights Legal Obstacles in Business Model that Provides Free Software

Zenefits has found itself recently involved in several court battles with state insurance regulators over whether or not their business model constitutes an illegal rebate. It is the latest example of technology taking market share from an industry whose services are traditionally provided through brokers. [ Read More ]
05/12/2015

Guidewire Software and Capgemini to Improve Claims Processing for Zurich's UK General Insurance

In an article written on Computers and Animation Journal in 1969, computer scientist Edmund Callis Berkeley said, "Most problems have either many answers or no answer. Only a few problems have a single answer". If there is one business that seeks to find multiple answers to many of its questions, it is the insurance industry [ Read More ]
05/12/2015

Events

Weekly Live Demo
Contact Center Solutions

Register Today!