PwC: Insurance more affected by disruptive change than banking and healthcare
Insurance CEOs are more concerned than leaders in any other industry about the combined threats to their growth prospects.
This is according to findings from the 20th annual PwC global CEO Survey.
PwC polled 95 insurance CEOs from 39 countries, who anticipate being hugely impacted by disruptive change and feel more threatened than leaders of sectors including entertainment and media, banking and healthcare.
Nevertheless, 80% of insurance leaders are confident they can grow revenues through embracing new technologies, adapting their workforce and pursuing M&A activity.
Fears around the speed of technological change have increased since last year, with 83% of insurance CEOs citing it as a threat to growth (up from 69%) and over a quarter (28%) saying technology will completely reshape competition in the industry over the next five years.
New entrants to the market continue to be perceived as a threat, with 65% of insurance leaders highlighting concerns about the competition they face.
Over-regulation continues to be the number one concern for 95% of insurance leaders across the globe. Other threats identified are uncertain economic growth (84%), social instability (75%), geopolitical uncertainty (74%) and the future of the Eurozone (72%).
Over half of insurance leaders globally (60%) believe it is becoming harder for them to compete in an open global marketplace amid moves toward more protectionist national policies.
Industry leaders are also concerned about shifting customer behaviour, as 78% of CEOs say this threatens growth (up from 64% last year).
In order to adapt, insurers need to ensure they have a diverse workforce representing their customer base, but 83% of insurance CEOs see a lack of availability of key skills as a threat to business growth.