PwC:: insurance companies must adapt to changing market dynamics – Insurance Age
Monday, 20 February, 2012 Leave a comment
I could not agree more with these words of wisdom from David Law. This isn’t the first time that PwC have tried to warn the industry about the need to “evolve” for survival in a rapidly changing risk environment.
Contrary to what some would have you believe, the lack of innovation – of the “creative destruction” variety – as evidenced in self-similar operations, culture, products, etc. IS all the confirmation that one should need to establish that “risk businesses” are still intent upon looking at the past for answers about the future instead of scanning their own risk horizon and creating resilient strategies for uncertainty!
David Law, global insurance leader at PwC, said: “The immediate pressures of market volatility and regulatory upheaval have left little space in boardroom agendas for insurers to think about how to remain competitive in the years ahead. It is vital insurers do not get blinded by the current challenges and set a clear vision for the future.
“Growth opportunities exist, particularly in faster growing economies and from new technology developments, and those insurers that are able to respond to this changing risk landscape with innovative solutions will be rewarded by the way they are valued by customers and investors.”
He added: “Insurers who are too slow to respond to the changing market dynamics could find themselves on the back foot competitively and struggling to secure sufficient capital.