EY lists business drivers for insurers

EY conducted a survey of CFOs in the insurance sector in 2016 and recently published the results. According to the survey that involved around 60 insurance companies across the globe, four main drivers for the business of insurance have been identified.

The survey idenfied that market expansion or achieving growth is a key priority. Regardless of regulatory regime, ongoing intense pressure on margins is forcing insurers to look at ever potential way to improve growth and return on capital. This includes moving into new products, new territories and M&A as well as fulfilling their digital agenda, the report stated. Another potential driver would constitute relieving pressure on costs margin and improving profit. According to surveyed financial officers, the ongoing pressure on profitability has once again put the spotlight on expense efficiency. An agile working model and reductions in ongoing expenses remains pertinent.

The survey results also prioritise on digital transformation or restructuring the organisational framework to optimise costs. The need to integrate finance, actuarial and risk to deliver insight is ever more critical, states the report. Improving big data and analytical capabilities will also be key to business growth, according to the survey results.