德勤-2019年保险业展望（英文）-2019.2-40页_4mb

2019 Insurance Outlook Summary

Core Content

The 2019 Insurance Outlook provides an analysis of the insurance industry's position as it enters the year, highlighting both positive developments and ongoing challenges. It emphasizes the need for transformation in response to evolving economic, technological, and regulatory landscapes.

Main Trends and Key Information

1. Insurance Industry Performance in 2018

• Positive Factors: Sustained economic growth, rising interest rates, and higher investment income bolstered insurer results in 2018.
• P&C Sector: US property and casualty (P&C) carriers saw significant growth, with premiums written increasing by 12.7% in the first half of 2018 and net income more than doubling to over $34 billion.
• Global Growth: Non-US insurance markets also showed growth, though at a slower pace than the US, due to faster economic expansion and lower unemployment in the US.
• Challenges in L&A Sector: US life and annuity (L&A) insurers struggled with flat or declining premiums, but annuity sales are expected to grow due to rising interest rates and increased disposable income.

2. Technology Trends

• Cloud Adoption: Cloud computing is becoming a core part of the insurance technology environment, with 70% of carriers using it. The focus is shifting from cost savings to speed, flexibility, and scalability.
• Cloud Strategy: Insurers should develop a multiyear cloud strategy, prioritize cloud deployment for new applications, and use it to enhance analytics and decision-making.
• Cloud Migration: A phased migration approach is recommended, with a focus on identifying applications based on business value, complexity, and criticality.
• Cybersecurity Concerns: As core systems and data move to the cloud, insurers must ensure they maintain control over security policies and risk management.

3. Blockchain Trends

• Real-World Applications: 2019 is expected to see the launch of more real-world blockchain applications, moving beyond proof of concepts.
• Examples: AIA Hong Kong launched a blockchain-enabled bancassurance platform, and AXA introduced flight-delay insurance via blockchain.
• Consortiums: Groups of insurers are forming alliances to share costs and enable cross-industry collaboration and quicker scalability.
• Future Impact: Blockchain is set to transform insurance operations, with potential for wider adoption in 2020.

4. The Future of Work

• Talent Challenges: The insurance industry faces tight labor markets, especially in technology, data science, and actuarial roles.
• Automation and Workforce Shifts: Robotic process automation and AI are changing job roles, requiring retraining and repurposing of existing staff.
• Flexible Workforce: Insurers are moving towards a more flexible and virtual workforce, including contingent workers, freelancers, and part-time employees.
• C-Suite Considerations: Leaders must adapt to new workforce structures, develop leaders for digital environments, and focus on retraining and retaining experienced workers.

5. Product Development Trends

• Need for Innovation: Insurers are under pressure to develop more flexible and personalized products to meet evolving consumer expectations.
• IoT and InsurTech: IoT and InsurTech are enabling real-time, on-demand coverage, such as Trov's single-item insurance and Bought by Many's niche products.
• Consumer Demand: 90% of life insurance buyers prefer self-managed policies through digital channels.
• Challenges: Implementing IoT-based products faces challenges such as high costs, complexity, and compliance issues, especially around privacy.

6. Mergers and Acquisitions (M&A) Trends

• Mixed Signals: While large deals slowed in 2018, smaller transactions continued. However, the industry may see a potential uptick in M&A in 2019.
• Debt and Valuation Concerns: Rising interest rates make debt more expensive, and relatively high valuations may discourage activity in the short term.
• M&A Activity: In 2018, the total deal value increased by 162% compared to 2017, with the P&C sector seeing the highest growth in both number of deals and value.

7. Regulatory Trends

• Focus Shift: Regulation is shifting from solvency to market conduct, emphasizing fair practices and customer protection.
• Cyber Risk: Regulations on cyber risk are expanding globally, requiring insurers to enhance their cybersecurity measures.
• Privacy Concerns: New privacy rules are putting insurers under increased scrutiny, particularly around data handling and consumer protection.

8. Tax Reform Impact

• Early Results: Tax reform has had positive early results for the insurance industry.
• Uncertain Long-Term Impact: The long-term effects remain unclear, with potential implications for profitability and market dynamics.

Key Questions for C-Suite

• Cloud: Is your organization prepared for a multiyear, phased cloud migration? Have you adapted your security policies for cloud use?
• Talent: Are you developing leaders for a digital and flexible workforce? How do you plan to attract and retain younger, tech-savvy employees and experienced Baby Boomers?
• Product Development: Are you considering hybrid coverages and real-time, consumer-activated insurance? How will you align with InsurTechs to innovate?
• M&A: Are you ready for potential increases in M&A activity? How do you plan to navigate rising interest rates and high valuations?

Conclusion

The insurance industry in 2019 faces both opportunities and challenges. While economic growth and technological advancements are driving positive results, insurers must remain agile and prepared for transformation in areas such as cloud computing, blockchain, talent management, product development, and regulatory compliance to sustain and enhance their competitive position.