PwC:: insurance companies must adapt to changing market dynamics – Insurance Age

PwC insuranceI 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!

risk horizonDavid 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.

via Pwc: companies must adapt to changing market dynamics Insurance Age.

Shared Value: from vicious circle to virtuous cycle

Economic Growth Isn't Working

Image by tonyhall via Flickr

Apart from the kudos of being a Harvard Professor, Michael E Porter is much sought after by some of the biggest Corporates on the planet. He “knows” and, in this article, he spells it out.


But is anyone in UK actually listening!?

…diminished trust in business leads political leaders to set policies that undermine competitiveness and sap economic growth. Business is caught in a vicious circle.

A big part of the problem lies with companies themselves, which remain trapped in an outdated approach to value creation that has emerged over the past few decades. They continue to view value creation narrowly, optimizing short-term financial performance in a bubble while missing the most important customer needs and ignoring the broader influences that determine their longer-term success. How else could companies overlook the well-being of their customers, the depletion of natural resources vital to their businesses, the viability of key suppliers, or the economic distress of the communities in which they produce and sell? How else could companies think that simply shifting activities to locations with ever lower wages was a sustainable “solution” to competitive challenges? Government and civil society have often exacerbated the problem by attempting to address social weaknesses at the expense of business. The presumed trade-offs between economic efficiency and social progress have been institutionalized in decades of policy choices.

Companies must take the lead in bringing business and society back together. The recognition is there among sophisticated business and thought leaders, and promising elements of a new model are emerging. Yet we still lack an overall framework for guiding these efforts, and most companies remain stuck in a “social responsibility” mind-set in which societal issues are at the periphery, not the core.

Creating Shared Value

‘Complexity’ Predicts Nations’ Future Growth – Real Time Economics – WSJ

skd283551sdcAnyone who has read anything I have written or commented upon in relation to the subject of complexity could be forgiven for thinking I view this as a major breakthrough for the cause. Well I do and I don’t!

In some respects it is common sense to say that you must know how to do something before you do it and that the more often you do it the better you get at it. Continually striving, or being driven, for greater efficiencies, exploring new techniques, recruiting/training employees, etc. in an effort to minimise the required inputs or maximise the return on the outputs. Apply it to any business,  at a variety of scales. Such is the fractal self-similarity of complex systems!

It is this very "universality" that confirms the significance of our (Ontonix) model-free solutions. Our technology transcends business sectors and can benefit firms large and small. These are the reasons  WHY we are “fanatical” about spreading the message that measuring complexity brings insight far beyond what even these distinguished Academics appreciate!

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If commitments aren’t honoured the SME may be an endangered species

This article tells us what the Government’s role isn’t but I don’t think that too many business people will disagree when I say their role IS to ensure that the climate allows for growth in spite of all the Austerity measures that are now beginning to bite! A major factor in this is that the Banks that WE bailed-out honour the commitments they gave. SO far they have failed to do so and no amount of rhetoric is going to make these  facts go away…so everyone loses

It is not the Government’s role to create jobs. Their task is to create the right economic climate so that those of us in business can create the jobs the British economy needs.  It is a fact that the SME Sector provides over 65 per cent of all private sector jobs.  It is absolutely vital therefore, that this engine of economic growth that is the SME sector, is kept well maintained, oiled and fuelled for the difficult and challenging journey ahead.

However, many of the entrepreneurs I talk to on a regular basis, have told me over the last six to nine months that they have now decided to focus all of their time and effort on consolidation and debt reduction rather than expansion.  Generally they seem to have reached that conclusion based on current bank attitudes. This is not what we want or need if we are to move the UK economy forward…

Is the SME sector an endangered species? – Business 7.