Insurers find innovation a struggle
Most insurance companies are finding it hard to transform their business for the future.
A report from KPMG says that only half of the insurers polled believe they can get any real value from transformational initiatives while 57 per cent say that their efforts so far have not produced the desired results.
"Insurers have been trying to 'transform' their organizations for decades– yet very little has actually changed," notes Mary Trussell, KPMG Global Lead Partner for Insurance Innovation & Change and lead author of the report. "If insurers are to truly 'reinvent' their business and position themselves for success in a world of disruptive innovation – they will need to make more fundamental changes to their business and operating models than ever before."
While insurance executives are aware of the need to comply with regulations, many are not focusing enough on the changing needs of customers. "We'd suggest that customers should be the inspiration for insurers' efforts to reinvent themselves," commented Trussell.
Technology is viewed as a key driver of change, something Trussell says insurers should be wary of – “you can’t let technology drive the bus” – mobile platforms, apps and social media are all identified as ways to gain new opportunities by insurers.
Around a third of respondents said that they were looking at non-insurance businesses for inspiration on reinventing their business.
Regulators, insurers consider impact of FinTech
The fast-paced growth of the FinTech sector is concerning for the insurance industry and its regulators.
A PwC report reveals that 90 per cent of insurers are concerned about losing business to standalone FinTech companies in the next five years while 68 per cent say that have taken concrete steps to mitigate that risk.
“InsurTech will be a game changer for those who choose to embrace it. Insurers have unrivalled access to consumer data and using cutting edge technology to thoroughly analyse it could result in significant benefits for both the company and the man on the street,” said Stephen O’Hearn, global insurance leader at PwC.
Meanwhile, the regulator of Quebec’s financial sector has formed a working group to consider how the FinTech sector should be regulated.
The AMF intends to participate actively with its national and international peers in efforts to gain greater insight into technological innovations and their associated issues.
Its president and CEO Louis Morriset commented: "We want to broaden our understanding to ensure that over time, the regulatory environment in Québec adequately addresses the many challenges and issues raised by fintech."
XL Catlin names E&S president for US
Stephen S. Oh has been named as the new president of Excess & Surplus at XL Catlin in the US.
He will lead the firm’s E&S operations directing regional underwriting operations, product distribution & development as well as strategic growth plans.
Oh has 25 years experience of underwriting and management and was most recently the president of
Chubb Custom Market.
