How is the Global Insurance Industry Performing?
Evaluating strategic performance in the global insurance sector involves understanding where each company stands in terms of financial performance. In today’s highly competitive environment, companies need to be aware of their balance sheets, final yields, market share, and valuation multiples to evaluate if they are on a healthy growth trajectory.
What Capabilities Enable Success in the Insurance Industry?
To be successful, insurance firms must develop certain capabilities. Credibility and good reputation are essential, alongside the ability to respond quickly to changes in the industry or geopolitical factors. A financial backbone to support large-scale payouts during catastrophic events and an operational model that supports efficiency and adaptability to tackle market shifts and technological changes are also critical.
What are the Goals and Strategies?
Global insurance companies aim to deliver increased shareholder value which requires a strategic focus on profitable growth, operational efficiency, strong capital and risk management. Strategies adopted to achieve these goals include digital transformation to enhance customer experience, investing in analytics for informed decision making, and diversifying offerings to broaden customer base and revenue streams while minimizing risk exposure.
Key Indicators
- Gross Written Premiums
- Net Written Premiums
- Loss Ratio
- Expense Ratio
- Combined Ratio
- Return on Equity
- Solvency Ratio
- Underwriting Profit Margin
- Insurance Penetration Rate
- Insurance Density
Key Trends
- Digital Transformation and Technological Adoption
- Increasing Regulatory Scrutiny
- Rising Demand for Cyber Insurance
- Health Insurance Sector Growth due to COVID-19
- Climate Change and Insurance Risks
- Growing Demand for Personalization
- Shift towards Direct-to-Consumer Models
- Expansion of Insuretech
- Emerging Markets Entering the Insurance Industry
- Integration of Big Data and Analytics