The stability that insurers have long relied on for predictable risk pricing and consistent growth is disappearing. There’s been a succession of short-term crises so far this century and these are part of longer-term trends.
In the recent past, we referred to five factors that profoundly affect the insurance industry: social, technological, economic, environmental, and political, known as STEEP. Their impact is only increasing. If anything, social instability, technological disruption, demographic shifts and climate change are leading to a fractured world in which insurers have to cover a greater array and frequency of intensifying risks.
As they grapple with these challenges, this article explores how we think insurance carriers will likely respond while determining the best ways to grow, attract customers and operate more economically and efficiently. The companies that most effectively cope with disruption will be the ones that reinvent themselves by focusing intently on the customer.
What’s next in insurance? Find out here.
Lara Elynne Nacario, Assurance Senior Associate, contributed to this Short Read.
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