General Insurance Article - Bleak outlook for insurance sector in 2013


Asia-Pacific and emerging economies remain only bright spots in an otherwise bleak outlook for the sector



 Continued economic pressure will force the insurance industry to take a more innovative approach to the role technology plays in their decision-making and operations, according to a new report from Ovum*. A focus on mobile solutions, advanced analytics, and near-realtime systems will be key.

 A familiar litany of economic issues will persist in 2013 as existed in 2012: struggles with keeping the eurozone whole, protests in the streets, volatile financial markets, high rates of unemployment, and low rates of growth in the developed world all combining to make the 2013 economy a difficult environment in which to generate profitable growth.

 Technology will play a central role in helping to combat falling revenues, with insurers focusing on strengthening channel management and making better decisions through analytics. It will be essential for insurers to optimize their core administration systems and make use of advanced analytics in order to remain competitive in the modern insurance market. Remaining in regulatory compliance will also become more of a pressing issue as deadlines for key regulations draw nearer.

 “There is no hiding that 2013 will be another tough year for the insurance sector,” commented Barry Rabkin, Principal Analyst, Insurance Technology. “The insurance demands of the growing middle class in the emerging economies and the continued economic growth in the Asia-Pacific region provide the only positive news for insurers as we approach 2013. A perfect storm of global events, the western recession, and incoming regulation means the industry must now adopt a technology-centric business model if they are to survive the coming years.”
  

Back to Index


Similar News to this Story

Comprehensive car insurance falls by 16 percent in 12 months
Comprehensive car insurance premiums have fallen by 16% (£136) during the last 12 months, with UK motorists now paying £735 on average, according to t
5m of us leave sheds and outbuildings vulnerable to theft
Nearly three in 10 (29%) UK residents have experienced an attempted or actual break-in to their shed or outbuilding. Just over two thirds (67%) of tho
Inside the rise of cargo theft
Cargo theft is surging worldwide, posing a growing threat to supply chains and consumer confidence. As eCommerce accelerates and global distribution n

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.