2011-03-15-奥纬咨询-Taking_Risks_in_Life_Insurance_8页_223kb

Summary of Oliver Wyman Report: Taking Risks in Life Insurance

The report argues that life insurance risk, particularly term assurance, represents a strong growth opportunity for European insurers due to its profitability and defense against competition from banks and asset managers. Key drivers include strong underlying margins and low capital consumption, reinforced by regulations like Solvency II. However, challenges persist, such as moderate growth rates in Western Europe, low market penetration, distribution difficulties, and a lack of deep understanding of biometric risks among some competitors.

To capitalize on this opportunity, the report outlines five main imperatives for insurers:

1. Build a culture of innovation focused on customer needs by implementing demand-led segmentation, creative product design, smart bundling, and balanced product offerings tailored to life cycles.

2. Deliver a consistent emotional message through integrated marketing and sales strategies that address deep-seated fears of uncertainty, supported by analytics and examples like tailored propositions in the UK and Austria.

3. Develop advanced pricing and underwriting capabilities by using granular risk data, considering profitability skews in targeting, and applying statistical techniques to price elasticity and underwriting.

4. Increase automation in administration and underwriting to enhance efficiency, reduce costs, and ensure seamless integration with distribution channels.

5. Capture maximum value in risk intermediation by rigidly managing portfolio exposure, optimizing reinsurance programs, and aligning strategies with risk appetite statements.

While life insurance risk is an under-exploited area, successful execution requires fundamental changes, such as strengthening dedicated risk management roles and fostering disciplined operations. The report concludes that a bold push into this sector could yield significant dividends but demands rigorous implementation.