On the surface the property and casualty sector appears to be doing quite well, but running an insurance carrier is rarely smooth sailing. The last few years have been particularly difficult for those occupying C-Suite positions, as more fundamental issues are threatening not only short-term results on their balance sheets, but challenging the long-term viability of their operating models as well.
For example, a growing number of insurers are facing significant organizational disruption. Many have made large-scale investments in technology, replacing core systems for claims, policy administration and finance. Their chief challenge now is how to effectively leverage the new systems they’ve put in place and maintain their momentum with additional innovations in personnel, products and culture.
Additionally, ongoing political gridlock in Washington could undermine an already unsteady economic recovery. Not to mention regulatory uncertainty that makes it difficult for carriers to plan ahead and determine operational priorities.
Innovation may ultimately be the key to keep insurers growing regardless of shifting economic and insurance market conditions, as they devise ways to thwart ongoing and emerging competitive threats as well as capitalize on new opportunities.
For more - visit http://www.deloitte.com/view/en_US/us/Industries/Insurance-Financial-Services/039bdd0819e23410VgnVCM3000003456f70aRCRD.htm
This document draws together our views, observations and analysis of the global trends in the insurance M&A market, including influencing factors and macroeconomic variables.
Our analysis covers five primary regions: Western Europe, North America, Asia, Latin America and the Middle East and North Africa. Each section includes a review and remark on deal activity and current trends, in addition to consideration
of future bearings.
The Productivity Imperative: 2013 Corporate Real Estate Trends for Banking an...JLL
Perhaps more than any other industry, the financial services sector has been challenged by the simultaneous pressures of intense competition, increased regulation, and margin compression.Although profits are once again rising for some banks, it is clear that there are still many risks ahead. In this environment, an optimized corporate real estate platform is no longer an option, but a necessity.This report identifies the elements of our global report that are top of mind in the financial services industry, and it details the most pressing issues facing bank CRE executives.
Pwc 2015 Technology Sector Sec Comment Letter TrendsPwC
PwC's technology industry publication provides a comprehensive analysis of recent SEC staff comments and disclosures to assist you in understanding the key trends relevant to companies in the technology sector.
This publication includes the deal activity in the insurance sector such as overall highlights, key announced transactions, and the outlook ahead. Read our full report to learn more.
The business landscape is being transformed by a series of megatrends, of which digital technology is already proving to be the most pervasive and potentially disruptive.
GLOBAL FRAUD COMMENTARY 2013
The presence of fraud and corruption in Construction can take many forms; from falsely representing the numbers of hours a contractor works, through to collusion when bidding for contracts or paying bribes to secure a contract. These inevitably increase costs and, in the case of bribes, inflate the contract price.
This document draws together our views, observations and analysis of the global trends in the insurance M&A market, including influencing factors and macroeconomic variables.
Our analysis covers five primary regions: Western Europe, North America, Asia, Latin America and the Middle East and North Africa. Each section includes a review and remark on deal activity and current trends, in addition to consideration
of future bearings.
The Productivity Imperative: 2013 Corporate Real Estate Trends for Banking an...JLL
Perhaps more than any other industry, the financial services sector has been challenged by the simultaneous pressures of intense competition, increased regulation, and margin compression.Although profits are once again rising for some banks, it is clear that there are still many risks ahead. In this environment, an optimized corporate real estate platform is no longer an option, but a necessity.This report identifies the elements of our global report that are top of mind in the financial services industry, and it details the most pressing issues facing bank CRE executives.
Pwc 2015 Technology Sector Sec Comment Letter TrendsPwC
PwC's technology industry publication provides a comprehensive analysis of recent SEC staff comments and disclosures to assist you in understanding the key trends relevant to companies in the technology sector.
This publication includes the deal activity in the insurance sector such as overall highlights, key announced transactions, and the outlook ahead. Read our full report to learn more.
The business landscape is being transformed by a series of megatrends, of which digital technology is already proving to be the most pervasive and potentially disruptive.
GLOBAL FRAUD COMMENTARY 2013
The presence of fraud and corruption in Construction can take many forms; from falsely representing the numbers of hours a contractor works, through to collusion when bidding for contracts or paying bribes to secure a contract. These inevitably increase costs and, in the case of bribes, inflate the contract price.
Client case studies: Where will your company find top talent? Look to the cloudPwC
A large entertainment, media & communications company found that its five semi-autonomous divisions each had its own vastly different talent management needs and processes, and that was a problem when it came to identifying and retaining top talent across all the operating units. Although the enterprise technically owned the core HR solution for four of the divisions, the support model was handled at the division level and did not use a Shared Services model, leading to inefficiencies and redundant efforts. The company wanted to develop standardized processes, procedures, and technologies across the divisions to create a cross-divisional view of talent focusing on operational excellence and employee engagement.
Insurers are upgrading their technology to support more complex
products, lower operating costs, and get closer to their customers.
But they can do more harm than good when they make changes
that alienate their independent agents. We’ve identified five steps
that can help insurers engage agents early and create a
transition plan that meets agents’ needs—converting these
important stakeholders into enthusiastic advocates.
The group insurance market shows real promise but, as of yet, most carriers are still trying to determine the best path forward. Moving from being in a quiet sector to the front lines of new ways of doing business has shaken the industry and confronted it with challenges –and opportunities – many could not have foreseen even a decade ago.
EY Insurance Business Pulse, 2013-2015 – exploring the top 10 risks and oppor...EY
Key findings:
• Companies are renewing customer focus to meet demand — one individual at a time
• Flexibility must be built into all aspects of the business to achieve cost competitiveness
• Regulation could lead to more effective risk management and help bolster stakeholder confidence in the industry
For further information visit: http://www.ey.com/GL/en/Industries/Financial-Services/Insurance/Business-Pulse--top-10-risks-and-opportunities-2013-15
International Capital Standard (ICS) Background PwC
PwC US risk & capital management leader Henry Essert and PwC global insurance regulatory director Ed Barron
recently sat down to discuss the proposed International Capital Standards (ICS) for insurers. They addressed at
length what the ICS is and what it could mean to insurers. The following pages contain their thoughts on the
standard, as well as some background information on capital management and related issues in the
insurance industry.
Waves of change: revisited – Insurance opportunities in Sub-Saharan AfricaEY
EY and Oxford Economics surveyed 125 insurance executives in seven countries in sub-Saharan Africa to identify factors powering the growth of the insurance sector and determine how companies are balancing opportunities and risks.
Health Services Tax Conference May 18-19, 2015, Presentations included: Mega Trends and the Impact on Healthcare, The Healthcare Industry: A View from Washington and The New Health Economy.
When it comes to scrutinizing costs, most insurance companies can say “Been there, done that. Got the t-shirt.” Managers are familiar with the refrain from above to trim here and cut there. The typical result is flirtation with the latest management trends like lean, outsourcing and offshoring, and others. However, the results tend to be the same. Budgets reflect last year’s spend plus or minus a couple of percent in the same places.
Etude PwC "18th Annual Global CEO Survey Insurance 2015"PwC France
L'étude "18th Annual Global CEO Survey 2015" du secteur de l’assurance, donne l’avis de 80 dirigeants répartis dans 37 pays sur les tendances majeures du secteur.
Delivering more value to the business through
performance measurement and improved decision
support is the top priority for the finance function
through 2020. Among senior finance professionals
participating in the 2014 EY Global Insurance CFO
Survey, 71% indicated that “being a better business
partner” ranked among their top three priorities,
with 35% placing this as number one.
In 2013, the ban on general solicitation of accredited investors was lifted, causing the largest change to securities laws in decades. While everyone from startups to hedge funds will enjoy new liberties in investor marketing and outreach campaigns, it’s critical that the new rules are followed to a T, eliminating the chance for exemption rescission.
Provider/payor Convergence: A path to continued growthGrant Thornton LLP
As bottom lines shrink, payors and providers are beginning to see convergence, or vertical integration, as the path to growth, Panelists from Johns Hopkins Institutions, Buchanan Ingersoll & Rooney PC and Grant Thornton LLP share their experience and offer insight on the challenges and benefits of this strategy. Read the full paper at http://gt-us.co/1Cv6MRA
Basel III Mortgages: Australia - Key Themes and Strategic Approachaccenture
The point of view explores the new Basel III reforms and the significant impact they will have on data and systems in Australia. The piece offers a strategic approach to Basel III Mortgages and outlines five key questions Australia’s banks need to ask as they prepare for additional regulatory obligations.
A report looking at comparative rankings of cities specifically
within APEC across multiple indicators; including housing, hard infrastructure, cultural vibrancy, tolerance and inclusion.
PwC Entertainment, media and communications deal insightsQ3 2015PwC
Deal volumes continue to stay the course with deal values declining in the absence of cable megadeals. PwC provides a summary of third quarter 2015 deal activity, megadeal activity and an outlook for key sectors.
18th Annual Global CEO Survey - Technology industry key findingsPwC
Tech CEOs are optimistic about the global economy and both near term and future revenue growth. They view strategic alliances, including partnering with competitors, as a primary means to grow their businesses. We invite you to explore the analysis and contact us to discuss how we can help your business capitalise on the new - but challenging - opportunities for growth. Learn more http://pwc.to/1DaolqY
Website: http://www.pwc.com/gx/en/ceo-survey/2015/industry/technology.jhtml
Cost vs. Risk: Finding the right balance for hedge fund administrationGrant Thornton LLP
Hedge Funds—Taking a fresh look at operations: How hedge fund managers can engage the right mix of internal, outside and shadow administration. Read the full paper at http://gt-us.co/1rjV3Se
Women at the wheel: Recruitment, retention, and advancement of women in the E...Deloitte United States
Women are manufacturing's largest pool of untapped talent. The global automotive industry faces a talent crisis as it undergoes a transformation that is creating opportunity for disruption and innovation. Diverse teams of talented professionals can help organizations compete in this increasingly complex environment. How can industry players improve the recruitment, retention, and advancement of women? For more than a decade, we have worked with Automotive News Group to explore this issue. With Automotive News in North America, we honor the 100 leading women in the industry. In Europe, we work with Automotive News Europe to recognize the 25 leading women in the industry. Through both programs, we ask women in the industry for their views and perspectives. This report looks at the findings from the European research efforts. https://www2.deloitte.com/us/en/pages/manufacturing/articles/women-in-the-global-automotive-industry.html
Client case studies: Where will your company find top talent? Look to the cloudPwC
A large entertainment, media & communications company found that its five semi-autonomous divisions each had its own vastly different talent management needs and processes, and that was a problem when it came to identifying and retaining top talent across all the operating units. Although the enterprise technically owned the core HR solution for four of the divisions, the support model was handled at the division level and did not use a Shared Services model, leading to inefficiencies and redundant efforts. The company wanted to develop standardized processes, procedures, and technologies across the divisions to create a cross-divisional view of talent focusing on operational excellence and employee engagement.
Insurers are upgrading their technology to support more complex
products, lower operating costs, and get closer to their customers.
But they can do more harm than good when they make changes
that alienate their independent agents. We’ve identified five steps
that can help insurers engage agents early and create a
transition plan that meets agents’ needs—converting these
important stakeholders into enthusiastic advocates.
The group insurance market shows real promise but, as of yet, most carriers are still trying to determine the best path forward. Moving from being in a quiet sector to the front lines of new ways of doing business has shaken the industry and confronted it with challenges –and opportunities – many could not have foreseen even a decade ago.
EY Insurance Business Pulse, 2013-2015 – exploring the top 10 risks and oppor...EY
Key findings:
• Companies are renewing customer focus to meet demand — one individual at a time
• Flexibility must be built into all aspects of the business to achieve cost competitiveness
• Regulation could lead to more effective risk management and help bolster stakeholder confidence in the industry
For further information visit: http://www.ey.com/GL/en/Industries/Financial-Services/Insurance/Business-Pulse--top-10-risks-and-opportunities-2013-15
International Capital Standard (ICS) Background PwC
PwC US risk & capital management leader Henry Essert and PwC global insurance regulatory director Ed Barron
recently sat down to discuss the proposed International Capital Standards (ICS) for insurers. They addressed at
length what the ICS is and what it could mean to insurers. The following pages contain their thoughts on the
standard, as well as some background information on capital management and related issues in the
insurance industry.
Waves of change: revisited – Insurance opportunities in Sub-Saharan AfricaEY
EY and Oxford Economics surveyed 125 insurance executives in seven countries in sub-Saharan Africa to identify factors powering the growth of the insurance sector and determine how companies are balancing opportunities and risks.
Health Services Tax Conference May 18-19, 2015, Presentations included: Mega Trends and the Impact on Healthcare, The Healthcare Industry: A View from Washington and The New Health Economy.
When it comes to scrutinizing costs, most insurance companies can say “Been there, done that. Got the t-shirt.” Managers are familiar with the refrain from above to trim here and cut there. The typical result is flirtation with the latest management trends like lean, outsourcing and offshoring, and others. However, the results tend to be the same. Budgets reflect last year’s spend plus or minus a couple of percent in the same places.
Etude PwC "18th Annual Global CEO Survey Insurance 2015"PwC France
L'étude "18th Annual Global CEO Survey 2015" du secteur de l’assurance, donne l’avis de 80 dirigeants répartis dans 37 pays sur les tendances majeures du secteur.
Delivering more value to the business through
performance measurement and improved decision
support is the top priority for the finance function
through 2020. Among senior finance professionals
participating in the 2014 EY Global Insurance CFO
Survey, 71% indicated that “being a better business
partner” ranked among their top three priorities,
with 35% placing this as number one.
In 2013, the ban on general solicitation of accredited investors was lifted, causing the largest change to securities laws in decades. While everyone from startups to hedge funds will enjoy new liberties in investor marketing and outreach campaigns, it’s critical that the new rules are followed to a T, eliminating the chance for exemption rescission.
Provider/payor Convergence: A path to continued growthGrant Thornton LLP
As bottom lines shrink, payors and providers are beginning to see convergence, or vertical integration, as the path to growth, Panelists from Johns Hopkins Institutions, Buchanan Ingersoll & Rooney PC and Grant Thornton LLP share their experience and offer insight on the challenges and benefits of this strategy. Read the full paper at http://gt-us.co/1Cv6MRA
Basel III Mortgages: Australia - Key Themes and Strategic Approachaccenture
The point of view explores the new Basel III reforms and the significant impact they will have on data and systems in Australia. The piece offers a strategic approach to Basel III Mortgages and outlines five key questions Australia’s banks need to ask as they prepare for additional regulatory obligations.
A report looking at comparative rankings of cities specifically
within APEC across multiple indicators; including housing, hard infrastructure, cultural vibrancy, tolerance and inclusion.
PwC Entertainment, media and communications deal insightsQ3 2015PwC
Deal volumes continue to stay the course with deal values declining in the absence of cable megadeals. PwC provides a summary of third quarter 2015 deal activity, megadeal activity and an outlook for key sectors.
18th Annual Global CEO Survey - Technology industry key findingsPwC
Tech CEOs are optimistic about the global economy and both near term and future revenue growth. They view strategic alliances, including partnering with competitors, as a primary means to grow their businesses. We invite you to explore the analysis and contact us to discuss how we can help your business capitalise on the new - but challenging - opportunities for growth. Learn more http://pwc.to/1DaolqY
Website: http://www.pwc.com/gx/en/ceo-survey/2015/industry/technology.jhtml
Cost vs. Risk: Finding the right balance for hedge fund administrationGrant Thornton LLP
Hedge Funds—Taking a fresh look at operations: How hedge fund managers can engage the right mix of internal, outside and shadow administration. Read the full paper at http://gt-us.co/1rjV3Se
Women at the wheel: Recruitment, retention, and advancement of women in the E...Deloitte United States
Women are manufacturing's largest pool of untapped talent. The global automotive industry faces a talent crisis as it undergoes a transformation that is creating opportunity for disruption and innovation. Diverse teams of talented professionals can help organizations compete in this increasingly complex environment. How can industry players improve the recruitment, retention, and advancement of women? For more than a decade, we have worked with Automotive News Group to explore this issue. With Automotive News in North America, we honor the 100 leading women in the industry. In Europe, we work with Automotive News Europe to recognize the 25 leading women in the industry. Through both programs, we ask women in the industry for their views and perspectives. This report looks at the findings from the European research efforts. https://www2.deloitte.com/us/en/pages/manufacturing/articles/women-in-the-global-automotive-industry.html
Our latest consumer product industry overview provides a closer look at the trends that are disrupting the industry and changing the way they go to market. For more information, read our new report: https://www2.deloitte.com/us/en/pages/consumer-business/articles/consumer-products-industry-outlook.html
Organizations succeed or fail on the strength of their leadership—and yet many are taking an outdated approach to development. Today’s smart companies build leadership growth into their everyday systems and processes. Look again at opportunities to unleash potential.
For more than 100 years, K-12 education in the US has taken place in the classroom between 8 A.M.-3 P.M. With the advent of technology, that model has changed. Discover how digital transformation is impacting the education ecosystem, both inside and outside of the classroom, with this inaugural Digital Education Survey: http://www2.deloitte.com/us/en/pages/technology-media-and-telecommunications/articles/digital-education-survey.html?id=us:2sm:3ss:diged:eng:tmt:100716
Inst 1120-PC (Schedule M-3)-Instructions for Schedule M-3 (Form 1120-PC), Net Income (Loss) Reconciliation for U.S. Property and Casualty Insurance Companies With Total Assets of $10 Million or More
We’re all camping at UX Camp West, so I thought I’d use the metaphor of a tent to share with you my view on the field of User Experience. I will describe the 7 poles of the tent's structure (research, design, evaluation, implementation, business, strategy, and management) and show you some random objects that I found in its corners. It is my goal that afterwards, we can all appreciate the beauty of the big tent, and realise how we contribute to a happy stay.
My books- Hacking Digital Learning Strategies http://hackingdls.com & Learning to Go https://gum.co/learn2go
Resources at http://shellyterrell.com/emoji
With the explosion of the maker movement, schools are beginning to embrace creativity. However, what does this mean for assessment? Should we assess the creative process? Should we assess the finished product? Does assessing creativity actually make kids more risk-averse? In this workshop we explore what it means to assess both the creative process and the creative product without leading to risk aversion.
This is my slide deck from my session at the North Carolina Reading Conference last week in Raleigh, NC. I do staff development to schools and districts all over the country about best practices in literacy instruction. This topic is one of my most requested.
From Conceptual to Executable BPMN Process Models A Step-by-Step MethodMarlon Dumas
Step-by-step tutorial showing how to turn BPMN process models designed by business analysts into executable processes deployable in a Business Process Management System. This tutorial was first given at the 11th International Conference on Business Process Management in Beijing, China on 29 August 2013. The tutorial is part of a series of lectures available at http://fundamentals-of-bpm.org
Slides from a webinar that I did recently for TIBCO. Full webinar replay with audio available at http://www.tibco.com/mk/2007/wsemtbpdesign08-aug-07usarc.jsp
Fundamentals of Business Process Management: A Quick Introduction to Value-Dr...Marlon Dumas
Marlon Dumas of University of Tartu gives an introduction and quick tour of the business process management lifecycle. Seminar given at the Estonian BPM Roundtable, 10 October 2013.
This presentation provides you with an overview of Business Process Management (BPM). The slides are from AIIM's BPM Certificate Program, which is a training program designed from global best practices among AIIM's 65,000 Associate and Professional members. The BPM program covers concepts and technologies for process streamlining and re-engineering; requirements gathering and analysis; application integration; process design and modelling; monitoring and process analysis; and managing change. For more information visit www.aiim.org/training
Roles have broadened in the past five years, leaving marketers with a wide spectrum of responsibilities. Learn more in this year's CMO Survey: http://cmo.deloitte.com/xc/en/pages/solutions/cmosurvey.html?id=us:2sm:3ss:cmosurvey:eng:cons:082516
2014 Life Insurance and Annuity Industry Outlook Transforming for growthDeloitte United States
It’s 2014. Is it the best of times? Is it the worst of times? Or is it both for the financial services industry?
For a view into where and how growth will emerge or solidify in 2014, the Deloitte Center for Financial Services sought insight and first-hand experience from nearly 200 of Deloitte’s financial services practitioners.
Their views yielded insight into how banks and the capital markets are repositioning for growth. How the commercial real estate market is trimming its sails for growth. How the insurance industry is transforming for growth. And, how investment management is faring on its quest for accelerated growth.
http://www.deloitte.com/view/en_US/us/Industries/Private-Equity-Hedge-Funds-Mutual-Funds-Financial-Services/center-for-financial-services/cdfdf026b94fa310VgnVCM2000003356f70aRCRD.htm
Analytics is a two-sided coin. While on one side, it uses
descriptive and predictive models to gain valuable knowledge from data, i.e. data analysis, on the other side, it provides insight to recommend action or guide decision making, i.e. communication
Stand on the Sidelines, or Boost Competitiveness? How to Make Bold Moves on t...Accenture Insurance
Sweeping changes across consumer behavior, technology innovations and big data are reshaping traditional insurance business models and what it takes to compete. The most successful insurers are the ones that will proactively adapt their game plan to the evolving environment and rules of competition. This piece explores three strategies to better position insurers for the future.
Insurers are continuing to face marked changes in what customers expect in terms of products and service, how they obtain and utilize the information that informs business decisions, and their underlying business and operating models. Top Insurance Industry Issues in 2016 describes in detail the internal and external changes insurers face and how they can gain a competitive advantage..
The insurance industry is undergoing fundamental transformation as it comes up against the impact of new regulation, new technology, accelerating shifts in consumer demand and mounting competition from digitally-enabled new entrants. In the face of so many disruptive challenges, it’s important not to lose sight of the huge opportunities they’re creating for insurers. Companies from other industries will be looking to your risk insight and expertise to help them navigate an increasingly complex and uncertain business and geopolitical landscape. You’re also in the pole position to capitalise on the new generation of analytics, sensor connectivity, and machine learning technologies that are set to revolutionise our lives. To make the most of these opportunities, it’s important to look beyond the traditional boundaries of the insurance business to embrace new ways of working, new ways of interacting with customers, and whole new possibilities in what your business can deliver.
Future-Proofing Insurance: Deepening Insights, Reinventing Processes and Resh...Cognizant
Insurance carriers face an imminent sea change in how their mission-critical processes remain efficient, agile and innovative. Ensuring relevance in the future requires redefined business models fueled by heightened productivity across fibusiness as usualfl activities.
201204 Nolan QNL: Life and Annuity Industry OutlookSteven Callahan
An abbreviated version of the industry forecast for 2012 pointing out the highlights of key issues, strategies, areas needing focus, and likely structural changes.
CBIZ Quarterly Manufacturing & Distribution “Hot Topics” Newsletter (Sep-Oct ...CBIZ, Inc.
This issue delivers links to key resources, NAM’s Manufacturers’ Q3 Outlook Survey and four articles on key industry topics — 3 Ways Manufacturers Can Bridge Talent Gaps & Improve Product; Is It Time to Consider Group Captive Insurance?; Equal or Equitable – The Family Business Owner’s Dilemma; and Special Purpose Acquisition Companies (aka SPACs) Are Really Hot!
Understand the Value of Your InsurTech CompanyMercer Capital
Valuing an InsurTech company can be complicated and difficult, but carries important significance for employees, investors, and stakeholders for the company. While all InsurTech companies have differences, including what niche (distribution, claims, benefits, etc.) they operate in or what stage of development the company is in, understanding the value of the business is critically important.
Property & Casualty Commercial Lines Underwriting: The New PlaybookCognizant
P&C commercial lines carriers are experiencing a global transformation that will compel them to reexamine their operating models, implement direct-to-consumer strategies, reengineer their processes and technologies, and achieve and sustain profitable growth in the age of digital.
Mercer Capital's Value Focus: FinTech Industry | Third Quarter 2021 Mercer Capital
Mercer Capital’s quarterly newsletter, FinTech Watch, provides an overview of the FinTech industry, including public market performance, valuation multiples for public FinTech companies, and articles of interest from around the web. This newsletter focuses on FinTech segments, including payment processors, technology, and solutions companies, examining general economic and industry trends as well as a summary of M&A and venture capital activity.
Similar to 2014 Property & Casualty Insurance Industry Outlook: Innovation leading the way (20)
Digital Asset Risk and Regulatory Compliance Expectations for 2024Deloitte United States
Executives involved in managing digital assets like digital currencies, digital securities, and stablecoins expect digital asset risks to increase and the regulatory environment to become more complex in 2024, according to a recent Deloitte poll . Related investments at most organizations are expected to remain flat.
According to a recent Deloitte poll, 57.2% of legal, risk and compliance professionals say their organizations have or will have a strategy for Generative AI within the next year.
Over 215 private equity investors (PEIs) and in-house, corporate M&A professionals (corporates) were polled online during a Deloitte webcast titled “Turning diligence insights into actionable integration steps” on July 25, 2023.
Emerging Technologies in Transformations Drive the Need for Evolving Internal...Deloitte United States
C-suite and other executives see artificial intelligence (AI) – which includes generative AI and machine learning – as the emerging technology that poses both the top risk (44.7%) and the top opportunity (35.9%) for their organizations’ internal controls environments in the year ahead, according to a new Deloitte poll.
Almost Half of Executives Expect Supply Chain Security Challenges in Year AheadDeloitte United States
Of over 1,000 C-suite and other executives, almost half (44.9%) expect an increase in the number and size of cyber events targeting their organizations’ supply chains in the year ahead, according to a new Deloitte poll. The expected increase seems to indicate higher go-forward concerns, as just 33.8% of respondents say their organizations experienced one or more supply chain cybersecurity events during the past year.
Divestiture Trends: 2023 Could See More Sell-Offs, but Expect Lengthier and M...Deloitte United States
Against the backdrop of continued economic uncertainty, inflation and rising interest rates, nearly half (47.9%) of M&A professionals say they are likely to pursue a divestiture in the coming 12 months, according to a recent Deloitte poll. Among those contemplating divestitures, 40.4% of those polled say their organizations are likely to pursue 1-2 divestitures in the year ahead while 7.5% say their organization may pursue as many as 3-4.
Cash and Liquidity Management Confidence Levels Declining Among Executives, a...Deloitte United States
Despite high expectations of a recession in the next 18 months and declining confidence in cash and liquidity management, C-suite and other executives are turning to cost containment strategies and advanced technologies to ease concerns, according to a recent Deloitte poll.
Few are Confident in Their Organizations’ Ability to Report on ESG FinancialsDeloitte United States
Less than half of professionals (45.7%) say they are confident in the ability of their organizations’ financial reporting teams to gather and report on environmental, social and governance (ESG) financial metrics for regulatory compliance purposes, according to a recent Deloitte poll.
Deloitte Poll: Legacy Tech Poses a Challenge to Zero Trust AdoptionDeloitte United States
C-suite and other executives at organizations adopting Zero Trust say complexity and compatibility issues with legacy systems and environments pose the greatest challenge to adoption (44.6%), according to a new Deloitte poll. Yet, Zero Trust adoption efforts at polled executives’ organizations will be driven in the year ahead by an expected increase in cyber threats (30.1%) and the need to better manage third-party risks (25.1%).
Private equity investors (PEI) could be early leaders when it comes to environmental, social and governance (ESG) efforts in M&A, according to a new Deloitte poll. Based on the data, PEIs lead their corporate M&A counterparts by factors of two and three when it comes to the use of ESG clauses in deal contracts and routine ESG due diligence.
Almost Half of Executives Expect a Rise in Cyber Events Targeting Accounting ...Deloitte United States
Nearly half (48.8%) of C-suite and other executives expect the number and size of cyber events targeting their organizations’ accounting and financial data to increase in the year ahead according to a new Deloitte Center for Controllership poll. Yet just 20.3% of those polled say their organizations’ accounting and finance teams work closely and consistently with their peers in cybersecurity.
Could M&A Activity be a Springboard for Controllership Transformation?Deloitte United States
Over two-thirds of M&A professionals say their organizations’ deal work has led to pursuit of some form of finance transformation (68.4%), inclusive of digital transformation, process simplification and automation, according to a new Deloitte poll. While most respondents indicate that such M&A-inspired transformation takes place post-transaction (33.6%), others initiate it during a transaction (21.9%) or pre-deal (12.9%).
Putting intercompany accounting back in the spotlight: Controllership Perspec...Deloitte United States
In the year ahead, 40.6% of finance and accounting professionals say their organizations will increase the time and effort put into intercompany accounting (ICA) management, according to a new Deloitte poll.
Many C-suite Executives Say Their Organizations Want to Build Trust in Year A...Deloitte United States
In the next year, 61.3% of C-suite executives say that their organizations will work to improve trust levels with key stakeholders — including customers, employees, third parties and shareholders — yet few report having a C-suite-level leader in place to manage efforts (19%) and fewer still have a way to track stakeholder trust levels (13.8%), according to a new Deloitte poll.
Harvest Now, Decrypt Later Attacks Pose a Security Concern as Organizations C...Deloitte United States
Just over half of responding professionals at organizations considering quantum computing benefits believe that their organizations are at risk for “harvest now, decrypt later” (HNDL) cybersecurity attacks (50.2%), according to a new Deloitte poll.
2002’s Sarbanes-Oxley Act (SOX) led to the establishment of SOX 404 programs. Many, though, haven’t been updated since their inception, and don’t account for new developments in technology, business environment, and operating methods. What’s the first step in modernizing your SOX program? A SOX assessment can help you extract new value.
A new working relationship: Aligning organizations with the workforce of the ...Deloitte United States
According to a new poll from Deloitte’s Center for Controllership, public companies are facing significant challenges (more so than private companies) in the war for financial talent, including attrition caused by the Great Resignation which remains a top three issue.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
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USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
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when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
2014 Property & Casualty Insurance Industry Outlook: Innovation leading the way
1. 2014 Property and Casualty Insurance
Industry Outlook
Transforming for growth
Innovation leading the way
Deloitte Center
for Financial Services
2. 2
Contents
Foreword 1
Innovation may be the ‘new normal’
for insurers seeking long-term growth 3
Competition and markets: New capital entering
industry might rejuvenate M&A activity 5
Clients and products: Evolving consumer
preferences could shake up insurance distribution 7
Governance, risk, and compliance: Regulatory
uncertainty leaves insurers in a holding pattern 10
Financial management: Transforming finance to
become internal business partners 12
Organizational effectiveness: Insurers look to
upgrade core operations, people power 14
Technology dynamics: Tech can level the playing
field as carriers cope with data challenges 16
Where should insurers go from here? 18
Contacts and acknowledgements 20
3. 2014 Property and Casualty Insurance Industry Outlook Innovation leading the way 1
Foreword
Dear colleagues:
"It was the best of times, it was the worst of times. . .”
So begins Charles Dickens’ A Tale of Two Cities. In many
ways, this describes pretty well the environment that
the financial services industry is facing as we head into
2014. The economy is showing some signs of life, balance
sheets are stabilizing, and consumer and manufacturers’
confidence indices are trending toward the positive. That
said, next year will likely be one of ongoing challenges for
industry executives to realign business models, adjust to
increasing amounts of regulation, and attempt to innovate
for growth.
Insurers’ growth prospects will be impacted by the
strength and staying power of the economic recovery.
Strategic planning by carriers will be affected by market-
place and regulatory uncertainty. The way insurers tradi-
tionally conduct their business will be challenged by new
competition from both within and perhaps outside the
traditional insurance industry.
This doesn’t mean insurers don’t have the ability to
control their own destinies. While constantly reassessing
their standard operating procedures, systems, and
personnel, they should be prepared to make transforma-
tional changes. Innovation may ultimately be the key to
keep insurers growing regardless of shifting economic
and insurance market conditions, as they devise ways to
thwart ongoing and emerging competitive threats as well
as capitalize on new opportunities.
We are pleased to share with you this outlook for 2014,
based on original research combined with the insights
and first-hand experience of many of Deloitte’s leading
insurance practitioners. The content is organized into six
major topical platforms, which are designed to explore
both industry-wide competitive and market dynamics,
as well as examine tactical trends and opportunities
within individual firms, providing insights aligned to the
following:
• Competition and markets — Evaluates existing industry
structure, the competitive landscape, and market
composition.
• Clients and products — Explores emerging trends in
retail and institutional customer behaviors, attitudes, and
needs.
• Governance, risk, and compliance — Reviews industry
risk management practices and regulatory mandates, as
well as their potential financial and strategic impacts on
industry participants.
• Financial management — Highlights how finance
leaders can better support their business partners and
provide needed insights to their firms.
• Organizational effectiveness — Analyzes how firms
have responded to talent, process, and other operational
challenges.
• Technology dynamics — Examines the evolving role of
technologies in the industry.
4. 2
We’ve included a graphic element, which you’ll see
throughout the report, that provides a signpost as you
navigate the outlook. If you pick up more than one of our
financial services outlooks, you’ll be able to easily compare
how the various industry sectors are addressing the six
issues by visiting the corresponding section.
We hope you find this report insightful and informative
as you consider your company’s strategic decisions in the
upcoming year. Please share your feedback or questions
with us. We would value the opportunity to discuss the
report directly with you and your team.
Competition
and markets
6Focus areas
Clients
a
nd
products
Technolo
gy
dynam
ic
s
Organization
al
effectivenes
s
Financial
management
Go
vernance,risk,
a
nd
compliance
Gary Shaw
Vice Chairman
U.S. Insurance Leader
Deloitte LLP
+1 973 602 6659
gashaw@deloitte.com
Jim Eckenrode
Executive Director
Deloitte Center for Financial Services
Deloitte Services LP
+1 617 585 4877
jeckenrode@deloitte.com
5. 2014 Property and Casualty Insurance Industry Outlook Innovation leading the way 3
The race for growth is on
On the surface, the property and casualty insurance
business appears to be doing quite well — at least when
compared to the past few years. Overall premium volume
continues to rise thanks to higher prices and the expansion
of insurable exposures in a slowly growing economy.
Catastrophe losses have been relatively modest, helping
produce an industry-wide underwriting profit of $2.3
billion and a positive combined ratio of 97.9 for the first
half of 2013, a big improvement from the net underwriting
loss of $6.3 billion and a combined ratio of 101.9 a year
earlier. And the industry also has plenty of capital on
hand, with aggregated policyholders’ surplus at an all-time
record high.1
Of course, such conditions can change in a hurry. Ongoing
political gridlock in Washington could undermine an
already unsteady and perhaps weakening economic
recovery. Regulatory uncertainties abound, making it
difficult for carriers to plan ahead and determine opera-
tional priorities. And the industry is always one major
catastrophe away from a multi-billion-dollar hit to its
bottom line.
Innovation may be the ‘new
normal’ for insurers seeking long-
term growth
On a more fundamental level, however, insurers have a
lot bigger challenges on their hands. In both personal
and commercial lines, insurers are struggling to adapt to
evolving consumer demands and higher service expec-
tations in an increasingly online economy, with more
information sought and transactions conducted over the
Web — often via mobile devices. And carriers are striving
to incorporate new, unstructured data sources while
upgrading their capabilities to leverage the considerable
amount of information they already have at their disposal.
Transformation makes the difference
Bottom line, property and casualty insurers will be hard
pressed to achieve more consistent and higher rates
of growth if they count on external conditions, usually
outside of their control, to harden markets, increase
premium volume, and improve investment income,
while settling for superficial changes in their systems and
standard operating procedures. Instead, companies should
be thinking about taking more transformational steps to
raise their game above the performance of competitors
and the industry as a whole.
2012
Net written
premium growth
Net income after
taxes ($ billions)
Combined ratio Net underwriting
gain/loss ($ billions)
2013
Up
4.5%
Up
3.7%
2012 2013
$24.542%
$17.3
2012 2013
97.9%
101.9%
2012 2013
$2.30
870%
-$6.40
1
Source: Quarterly recap by ISO and Property Casualty Insurers Association of America
Figure 1. P&C sector-wide results
Net written premiums were growing faster in the first half of 2013 than a year earlier, but there are indications that price increases
are tapering off as capacity has expanded and economic growth has remained relatively modest.
6. 4
“Rather than wait for a rising economic tide to lift all
insurer boats, carriers should consider transforming the
ways they do business to compete more effectively regard-
less of market conditions, as well as to differentiate their
brands as part of the leading edge,” according to Gary
Shaw, U.S. Insurance Leader for Deloitte LLP.
“Transformation is required because insurers need to keep
pace with changes being implemented not only by tradi-
tional competitors, but also new players from outside the
industry,” Mr. Shaw added. For example, hedge funds are
pouring capital into the reinsurance market, changing the
competitive dynamic, while some technology firms are
entering insurance distribution directly rather than merely
providing software and support for traditional players.
As a result, insurers will likely need to be more adaptive in
their thinking, their culture, and their strategic approach
if they expect to be market leaders in an increasingly
competitive, more tightly segmented, and ultimately
customer-driven environment.
In the six sections of this outlook, we’ll examine a few of
the key issues keeping insurance executives up at night,
how those issues might develop in the year ahead, along
with a “bottom line” recap offering some suggestions on
how insurers might respond.
Our outlook makes clear that macro- and microeconomic
trends will challenge insurers to shake up the status quo
and develop new systems and processes throughout their
internal organizations and external distribution chains.
For this reason alone, these are actually exciting times
for insurance executives, who have a chance to reinvent
their business models so that the industry doesn’t merely
survive, but prospers at a time when innovation and
change is an ongoing journey, although likely never a
final destination.
Figure 2. U.S. Treasury yield curve rate
Persistently low interest rates have undermined insurer investment returns over the past few years and put pressure on carriers to price
their products for an underwriting profit.
0
1
2
3
4
5
6
Jan 07 Dec 07 Dec 08 Nov-09 Nov-10 Oct-11 Oct-12 Sep-13
Intrestrate(%)
5Yr 10Yr
Source: US Department of Treasury. "Historical Treasury Rates.”
http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/Historic-LongTerm-Rate-Data-Visualization.aspx. 2013.
7. 2014 Property and Casualty Insurance Industry Outlook Innovation leading the way 5
Although premium volume has been on the rise for
the past couple of years thanks to higher rates and
more exposures to insure in a still sluggish but growing
economy, pricing power for property and casualty insurers
began to deteriorate in the second-half of 2013, likely
making organic growth more challenging for many
carriers in 2014.2
One major factor restraining rate increases in the
commercial property market has been the influx of
capacity from non-traditional sources, as capital market
players seeking higher returns, as well as uncorrelated risks
for their portfolios, have poured funds into the reinsurance
business. Hedge funds have launched new reinsurance
vehicles, while demand from individual investors, as well
as from institutions such as pension funds, has fueled
expansion in catastrophe bonds.
New capital entering industry might
rejuvenate M&A activity
6Focus areas
Competition
and markets
Clients
a
nd
products
Technolo
gy
dynam
ic
s
Organization
al
effectivenes
s
Financial
management
G
overnance,risk,
a
nd
compliance
This additional capacity has increased competition and
undermined the ability of established reinsurers to raise,
or in some cases even maintain rate levels. Consolidation
might be one solution to drain excess capacity from the
market, perhaps overcoming a number of headwinds that
have been a drag on insurer M&A activity over the last
couple of years.
For example, from the buyer perspective, many publicly-
held carriers have been allocating excess capital to initiate
stock buybacks, viewing such a strategy as more capital
efficient and potentially less problematic than buying part
or all of another company’s operations. However, there
are indications that the impact of such a strategy may
be playing out, perhaps prompting renewed interest in
boosting share value by making an acquisition instead.
Year 2008 2009 2010 2011 2012 2013
Number of deals 60 48 69 68 58 32
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
0
2,000
4,000
6,000
8,000
10,000
12,000
2008 2009 2010 2011 2012 2013
AverageP/BV(x)
Aggregatedealvalue($M)
Aggregate deal value ($M) Average Price/Book Value multiples
While overcapacity might soon drive additional consolidation, particularly in reinsurance, many carriers have been initiating stock
buybacks with excess capital rather than attempt riskier acquisitions, although indications are this trend may be playing out.
2
"Personal lines moderating, no signs of hardening,” National Underwriter, Sept. 4, 2013.
Figure 3. M&A trends for property and casualty
Source: SNL Financial
• Transactions represent U.S. and Bermuda Property & Casualty Insurance Underwriters making acquisitions on a global basis.
• Transactions grouped by the year they were announced. 2013 captures the year to date period as of Oct. 4, 2013.
• Deal multiples represent closed multiples, unless the transaction is still pending its closing.
8. 6
The bottom line
With valuations rebounding of late, overcapacity
dampening organic growth, and stock buybacks
perhaps heading for a decline, be prepared for
a more dynamic mergers and acquisition market
in 2014. The time may be ripe for insurers to
reexamine their strategic direction and determine
how an M&A might help them achieve their
growth targets. Consider the types of companies
(and pieces of companies) that might align with
a carrier’s strategic objectives, as well as how to
effectively absorb them so they are accretive
to earnings.
What's new for 2014?
The additional capital that has flowed into the industry
is likely creating excess capacity, undermining pricing
leverage, and inhibiting organic premium growth. This
might end up rejuvenating what has turned out to be a
rather tepid merger and acquisition environment
for insurers.
A big question is whether new capital market players will
exit reinsurance if a series of disaster losses and/or a high-
severity event undermines investor confidence. However,
if the new investors entering the market have staying
power, reinsurance is the first area that might be ripe for
consolidation, as carriers look to redeploy some of their
excess capital by taking over competitors.
From the buyer’s perspective, primary carriers are likely to
focus on M&As building scale or capabilities. Mid-size and
regional companies might turn out to be the most active in
the M&A market, as they look for opportunities to enlarge
their footprint and take their game to the next level.
Additional consolidation in the agent/broker community is
expected as well, as intermediaries move to increase their
market access and leverage.
9. 2014 Property and Casualty Insurance Industry Outlook Innovation leading the way 7
The distribution landscape is morphing into an
increasingly diverse mosaic. Web-based aggregators,
agencies, and auction sites are providing online
insurance shoppers with multiple quotes from different
carriers. Emerging trends are likely to drive even more
fundamental changes next year and beyond.
One is the growing interest of carriers and online
intermediaries in selling commercial insurance coverage
direct to small-business consumers over the Web.
Another is the continuing expansion of usage-based
auto insurance, driven by telematics. A third is the launch
of private exchanges to sell health insurance. Each of
these initiatives has heavy data analytics and technology
platform hurdles to clear if insurers hope to capitalize on
the growth potential in these developing markets.
Meanwhile, product development is evolving as well
to cover the rising threat of hacker attacks and the
potentially crippling exposures facing businesses
(including insurers) if the security of personal client
information is breached, prompting more sophisticated
cyber-liability policy and risk management service
offerings.
In addition, growing awareness of broader environmental
liabilities and the increased attention being paid to
“green” construction and manufacturing is spurring new
product development and additional premium volume for
mainstream and specialty insurers alike.
Another climate-change-related opportunity could
emerge as reform legislation requires the National
Flood Insurance Program to explore the possibility of
increasing private carrier participation in this troubled, but
potentially huge property insurance market.
Evolving consumer preferences could
shake up insurance distribution
6Focus areas
Competition
and markets
Clients
a
nd
products
Technolo
gy
dynam
ic
s
Organization
al
effectivenes
s
Financial
management
G
overnance,risk,
a
nd
compliance
What's new for 2014?
A survey of small-business consumers by Deloitte found
that about one-in-five would be very likely to buy
insurance direct from carriers over the Web if given the
opportunity, while another third would be somewhat
likely to take the plunge, with differences seen depending
on the respondent’s age and size of business (Figure 4).
The surveyed sample of likely online consumers does
expect a discount of 10-15 percent in return for buying
direct, but that is in line with the commission levels often
paid to agents and brokers.3
“While few opportunities exist today in the United States
to buy small-business coverage direct over the Web,
other than in commercial auto and professional liability,
that’s very likely to change. In 2014, more carriers may
follow the lead of their counterparts both in the United
Kingdom, where many lines are already routinely sold
over the Web, as well as here in the United States,
where direct-sales initiatives are underway or under
consideration,” according to Donna Schlegel, a director
with Deloitte Consulting LLP.
In the meantime, while property and casualty insurers
may not start marketing products through private health
insurance exchanges this coming year, 2014 might be
a good time to begin exploring the potential for such
piggyback sales. Implementation of health insurance
exchanges will introduce tens of millions to Web-based
insurance transactions for the first time, leaving open the
possibility to cross-sell additional types of insurance while
consumers are already online.
3
Voice of the small-business insurance consumer: Are buyers ready to take the direct sales route?,
Deloitte Development LLC, 2013.
10. 8
18-25
5%
47%
48%
38%
40%
22% 14%
32%
54% 48%
35%
17% 18%
39%
42%
54%
31%
15%
26-34 35-44 45-54 55-64 65 or over
Less than
$100,000
Likelihood of
buying business
insurance online
directly from
insurer $101,000
to less than
$250,000
$250,000
to less than
$500,000
$500,000
to less than
$1 million
$1 million
to less than
$5 million
$5 million
to less than
$20 million
28%
38%
34%
51%
30%
19%
13%
49%
38%
47%
38%
16% 11%
34%
55% 57%
29%
14%
Age
Annual company revenue
Source: Voice of the Small Business Insurance Consumer Survey, Deloitte Center for Financial Services, March 2013
16%
35%
49%
Very likely Somewhat likely Not very likely
Figure 4. How likely are small businesses to buy insurance online, direct from carriers?
Half of small businesses surveyed by Deloitte said they would be at least somewhat likely to buy their commercial
insurance direct over the Web, with the smaller companies most likely to go that route.
11. 2014 Property and Casualty Insurance Industry Outlook Innovation leading the way 9
Yet this trend may not necessarily lead to
disintermediation, should an “advice gap” prompt
consumers to seek the help of insurance professionals
in navigating the new exchange system and in clarifying
their coverage options. In fact, many major brokers
are already taking the initiative by setting up their own
private exchanges, while new online agencies offering
comparative quoting services are also making a bigger
impact in both personal and commercial lines.
On a more fundamental level, however, property and
casualty insurers with medical components in their
policies may have to adapt to some negative fallout from
health care reform. If demand for medical services soars
because millions more people will have health insurance,
that could increase wait times to see a doctor, take a
diagnostic test, or get rehabilitative services, which could
increase the severity of indemnity claims for workers’
compensation carriers by delaying a return to the job.
And if medical providers are overtaxed by the expected
flood of new patients, their exams might be more hurried
or delegated to non-M.D. practitioners, which could
increase the risks facing malpractice insurers.
The bottom line
Insurers interested in selling small-business
insurance or other coverages direct to consumers
will be upgrading their underwriting, pricing, and
customer service systems, fueled by predictive
analytics. Even carriers not choosing to go direct
should consider system enhancements to counter
those that do go that route, as well as to meet
higher customer service expectations being raised
by online sellers in other industries. Carriers should
also start getting their strategies in order and
consider aligning with private health insurance
exchange partners they think might be a good
match for cross-selling property and casualty
products, or risk being left out in the cold when
the trend does catch on.
On the other hand, the fact that more people have health
insurance might remove the temptation for the currently
uninsured to file fraudulent workers’ comp claims to
get medical care for non-work-related injuries. And a
healthier population more likely to get preventative care
could lower frequency and severity for both workers’
comp and malpractice insurers.
12. 10
Despite lots of talk this past year about the potential
impact of various U.S. and foreign regulatory reform
initiatives on the insurance industry, 2013 saw relatively
few significant changes directly affecting property and
casualty carriers.
One involved the implementation of a new risk-based
capital charge for catastrophe risk. Beginning with the
reporting period covering year-end 2013, the latest
version of the proposal would allow companies to use
whatever risk model and assumptions they employ
internally in preparing the catastrophe-risk-charge
report filing.
But on many other fronts, the industry has been stuck
in a waiting mode this year, resulting in a great deal of
regulatory uncertainty that makes strategic planning
extremely challenging. For example, concerns remain
about the renewal of the Terrorism Risk Insurance
Program (TRIP), which expires in December 2014.
What's new for 2014?
The Federal Insurance Office (FIO) came out in December
with its long overdue report on how insurance regulation
could be modernized and improved.
“The FIO report in some respects is a challenge to state
regulation but overall is not likely an immediate threat to
state supremacy,” says Howard Mills, chief advisor for the
Insurance Industry Group at Deloitte LLP. “Most of FIO’s
recommendations require Congressional action, which
is not expected anytime soon, or is a call to the states
to make changes, which FIO cannot now compel. The
bottom line is that there is likely to be little immediate
impact, but continued uncertainty over a slowly evolving
regulatory landscape shaped by how the states and
federal government interact.”
Regulatory uncertainty leaves
insurers in a holding pattern
6Focus areas
Competition
and markets
Clients
a
nd
products
Technolo
gy
dynam
ic
s
Organization
al
effectivenes
s
Financial
management
G
overnance,risk,
a
nd
compliance
The report was a mixed bag for the property and casualty
industry. It called for federal regulation of mortgage
insurers. It also said the FIO would work with states
to establish pilot programs for rate regulation in order
to maximize the number of insurers offering personal
lines products. This latter initiative may be a positive for
insurers operating in the most restrictive environments —
those requiring prior approval of rate filings, for example
— and may open the way for more and faster
product innovation.
On the other hand, the report takes direct aim at the use
of some underwriting and rating factors, including marital
status. The FIO will “study and report on the manner in
which personal information is used for insurance pricing
and coverage purposes.” According to the FIO, risk
factors in an age of widely available personal data may
be “an appropriate subject for binding, uniform federal
standards.” Consumer groups have harshly criticized the
use of some such personal factors in auto insurance rate
and coverage determinations recently.
The FIO report also called for states to identify, adopt and
implement best practices to mitigate losses from natural
catastrophes, an apparent positive for both the property
and casualty industry — which has worked to encourage
states to improve building codes and implement other
mitigation initiatives — and consumers, who could
benefit from lower costs and more protective structures.
Meanwhile, what to do in response to TRIP’s looming
expiration could dominate insurance-related headlines
throughout the year, unless Congress overcomes its
current gridlock and agrees to renew the program in time
to spare buyers from having to go bare on the exposure
or pay a much higher premium for coverage.
13. 2014 Property and Casualty Insurance Industry Outlook Innovation leading the way 11
The bottom line
Regulatory uncertainty will continue to be the
norm in 2014. One casualty of the ongoing
gridlock in Congress could be terrorism insurance
for property owners, although insurers should be
prepared for a potential regulatory backlash if the
industry moves in force to limit or abandon the
coverage, or to effectively price consumers out of
the market.
More kitchen table consumer concerns, such as
the availability and affordability of auto insurance,
could come under a harsh spotlight, so carriers
should prepare to defend their underwriting and
pricing practices. Insurers have addressed this to
some extent through new products such as pay-as-
you-drive coverage. But carriers should expect an
increased market conduct focus by state insurance
regulators conscious of the industry’s exemption
from the purview of the federal Consumer
Financial Protection Bureau.
“Even if Congress renews TRIP, if changes are made to the
cost-sharing formula or to nuclear, biological, chemical,
or radiological coverage requirements, that could require
insurers to reevaluate the potential cost,” according to
Mr. Mills. This in turn could end up having just as big
an impact on the availability and price of commercial
insurance in highly concentrated markets as if the
program had not been renewed, at least in the
short term.
Insurers are also bracing themselves for a court ruling
on the challenge to a regulation issued by the U.S.
Department of Housing and Urban Development that
would use “disparate impact” — the doctrine that an
unintentional act could be considered discriminatory if it
has a disproportionate effect on a protected class — as a
metric for evaluating insurance performance. “Were the
courts to allow the use of the disparate impact standard,
insurers may well be forced to reevaluate valuable
underwriting factors used to offer or price insurance,
despite their predictive accuracy,” according to Mr. Mills.
One significant looming accounting change involves
contracts under U.S. Generally Accepted Accounting
Principles (GAAP). The Financial Accounting Standards
Board (FASB) has proposed, among other changes, to
have most property-casualty companies use the premium
allocation approach to insurance and reinsurance
products, including a separate liability being recorded
when a claim is incurred. FASB began its review after the
comment period closed in October 2013.
14. 12
Finance is more often being asked for decision support and
strategic advice within insurance companies, prompting
transformation initiatives to evolve the function into an
internal business partnering role by strengthening its link to
broader enterprise goals, such as product focus and capital
depoyment.
In an increasingly complex business environment, finance
functions at financial services organizations are expanding
their capabilities to support the introduction of new products
and markets, cost reduction initiatives, and efforts to achieve
appropriate risk-adjusted returns, according to a Deloitte
survey of chief financial officers.4
Business partnering in this context can be defined as the
role that finance will assume to both support and challenge
insurer initiatives. It is a shift from stewardship to strategic
thinking, with finance looking to create value by improving
the quality of business decisions while helping realize the
highest financial value for a particular initiative at what is
considered to be an acceptable level of risk. The challenge
is for finance to develop into an effective internal business
partner to enhance strategy formulation and execution,
while maintaining its stewardship and control capabilities.
Carriers are also looking to prepare for new financial
information demands from regulators, likely to be generated
by the National Association of Insurance Commissioners’
(NAIC) Own Risk and Solvency Assessment initiative, the
European Union’s Solvency II directive, and other such calls
for data and analysis. Finance will likely play a major role in
scenario planning, stress testing, and other efforts to comply
with new oversight requirements.
A number of insurers continue to face challenges in finance
when it comes to adapting legacy systems to meet these
evolving data demands. Deloitte’s research into business
partnering among finance leaders in 11 industries found
that while technology is a key enabler, it can also be an
obstacle in effectively supporting the business, thus driving
the need for transformation efforts. The survey showed that
even when finance business partners have the correct data,
they often have to spend significant time rationalizing it to
make it relevant for strategic business purposes. Indeed, 57
percent ranked “finance systems inhibiting access to data” as
a top-three barrier.5
Transforming finance to become internal
business partners
6Focus areas
Competition
and markets
Clients
a
nd
products
Technolo
gy
dynam
ic
s
Organization
al
effectivenes
s
Financial
management
G
overnance,risk,
a
nd
compliance
What's new for 2014?
A growing number of carriers are poised to move further
along the finance maturity curve so they may become
true internal business partners, while also upgrading
their systems and capabilities to provide the data and
insights required to meet increasingly stringent regulatory
demands.
Under Deloitte’s "Four Faces of Finance" framework6
(Figure 5), “Stewards” tend to emphasize protecting
company assets and ensuring compliance with financial
regulations, while “Operators” generally support efficient
finance operations and service delivery. However, business
partnering likely requires taking the finance function
to the next level. “Strategists” help determine business
direction and align financial strategies, while “Catalysts”
look to proactively stimulate behavior to achieve strategic
as well as financial objectives.
Therefore expect finance functions at a growing number
of insurers to move towards partnering, and in the
process become a more integral contributor as Strategists
and Catalysts in key business activities — including
target-setting, forecasting, capital investments, risk
management, and governance. The drivers are two-fold,
one being regulatory demands for stress testing and
scenario planning, with the other being the need to
better integrate finance into overall business partnering.
To reach this higher stage of transformation, finance
will likely need to collaborate more closely with other
functions, such as risk management, than may have
been the case historically. To accomplish this, insurers
will look to bring together financial and operational data,
which often is not within the current reach of finance.
As a result, they will also likely need greater information
technology support to produce the types of data being
sought for both business purposes and regulatory needs.
Talent can be a differentiator. Carriers looking to bolster
their finance capabilities may need to develop or
recruit those with certain critical competencies, such as
commercial acumen and decision-making skills, strategic
thinking, and the ability to influence and even challenge
enterprise decisions.
4
CFO SignalsTM
Survey, Deloitte
LLP, 2013.
5
Finance business partnering
survey: changing the focus of
finance, Deloitte LLP, 2012.
6
Unlocking the potential of
Finance for insurers, Deloitte
Development LLC, 2013.
15. 2014 Property and Casualty Insurance Industry Outlook Innovation leading the way 13
As companies transform financial processes, the lines of
business, risk, and tax departments will look to reevaluate
and improve the availability and quality of information,
especially in relation to non-SEC/financial reporting data,
as they seek to bolster business intelligence, predictive
analysis, risk management, and capital allocation.
The bottom line
Insurance players should take a more holistic
approach to their finance transformation initiatives,
exploring how finance could create greater value
by playing the role of a Strategist and perhaps
Catalyst in decision-making on broader company
challenges. The resulting finance-model design
should be flexible and scalable, to remain in sync
with an insurer’s evolving business model and
operating philosophy.
Without sacrificing their stewardship role, finance
leaders should develop a plan to align with
higher value enterprise activities so they may
become more valuable business partners with
their internal clients. To evolve in this direction
effectively, partnering competencies should
be built or imported into finance — an area
where recruitment and development efforts
have traditionally focused more on acquiring or
developing technical proficiency rather than a
broader business skill set.
7
2012 Global outsourcing and insourcing survey, Deloitte Consulting LLP. (The survey results are based on all
major industries and regions with 15 percent of participants from FSI.)
8
COSO is the Committee of Sponsoring Organizations of the Treadway Commission, a joint initiative of
five private-sector organizations that develops frameworks and guidance on enterprise risk management,
internal controls, and fraud deterrence.
Strategist
Stew
ard
Operator
Catalyst
CFO
Focus
Triangle
CFO
Focus
Triangle
Finance
Function
Execution
Perform
ance
Efficiency
Control
Assist the company
to execute its strategic and
financial strategies
Provide financial
leadership in M&A,
financing, capital markets,
and longer-term strategies
Accurately report
on financial position
and operations to
internal and external
stakeholders
Balance capabilities,
talent, costs, and
service levels to fulfill
core responsibilities
efficiently
Many carriers likely reside at the early stages of finance transformation,
focusing on improving the roles of Steward or Operator, centered on
building infrastructure, improving efficiency, and cutting costs through
outsourcing or shared services, but that is likely to change as more seek
to enhance the Finance function's role into full-fledged internal
business partners.
In addition, there could be an increased utilization of
outsourcing in the finance area for more routine activities
to facilitate a greater focus on core strategic, business
partnering priorities in-house.7
Insurers also have an
opportunity to reexamine and streamline their control
processes to better align with the new COSO8
framework
— to ensure that any risks emerging from increased
outsourcing and use of third-party services are
well managed.
Figure 5. The four faces of the finance function
16. 14
Faced with uncertain growth prospects over the past
few years, many carriers have focused on organizational
restructuring and system upgrades to improve efficiency,
reduce operating costs, and shore up their
financial results.
Yet more complex operational challenges likely must
be overcome if insurers are to keep up with emerging
trends, such as the expansion of telematics and the
introduction of direct sales of small-business insurance.
To capitalize on these and other innovations, carriers
will likely need to create more analytics-driven, straight-
through processing systems.
To remain competitive in this environment, carriers
will consider transformational initiatives to improve
enterprise-wide agility in their operating models and to
leverage customer, underwriting, and pricing data for
sustained competitive advantage over the long term.
One of the more common efforts of this kind has
lately involved claims transformation, which goes
beyond just installing a revamped technology system.
Tapping new analytic algorithms to better assess claims,
correlate them against a wider array of customer data,
and more effectively red-flag potential anomalies that
could indicate fraud is a very important element of the
transformation, and is becoming table stakes for such
reorganizations. The end game is to hasten turnaround
time, improve productivity, and reduce costs while
upgrading the customer experience.
However, carriers are starting to realize that an essential
part of the systems transformation journey is evolving
the roles and upgrading the capabilities of affected
personnel. In some cases, bolstering the claims staff’s
skill levels may prove to be integral to long-term
performance improvement. The same could be said of
other transformation efforts as well.
This raises a more fundamental problem and spotlights
a critical organizational deficiency that could hinder the
operational effectiveness of many insurers — that is,
the shortage of skilled talent to facilitate innovation,
implement transformation projects, and improve
productivity.
“Despite relatively high unemployment, there is a
shortage of qualified workers steeped in specialized skills
insurers crave, including advanced analytics, predictive
modeling, mobile technology, and other abilities in
high demand, leaving the industry to cope with a talent
paradox — having millions unemployed, but few ready,
willing and able to step in and help insurers transform
their operations,” according to Andy Liakopoulos, a
principal in the Human Capital Practice of Deloitte
Consulting LLP.
Insurers are competing not just with one another
for such highly-skilled talent, but with other financial
services sectors and many other industries as well,
particularly those in the high-tech fields. Exacerbating
this problem are overall demographic concerns, with a
generally older and aging insurance work force in many
important functions.
The rapid adoption of data-driven initiatives has
widened the talent gap for insurers, given the
economy-wide demand for individuals with analytical
skills. Therefore, attracting, developing and retaining
employees with such specialized capabilities remains
a significant hurdle to overcome and a potential
differentiator for those that do.
Beyond recruiting challenges, “a silo mentality limits
the ability of many carriers to effectively create
alternative career paths for those with skills that might
be adaptable for other, more pressing needs within the
company,” added Mr. Liakopoulos, who leads Deloitte
Consulting LLP’s U.S. Talent Strategies practice.
What's new for 2014?
Carriers will continue to focus more on transformation
initiatives in claims, underwriting, and other core systems
to improve their agility and flexibility. Emphasis will be
placed on simplifying and reducing cycle time to improve
customer satisfaction, expanding straight-through
processing until a human touch is required, as well as
establishing more direct access to the customer.
6Focus areas
Competition
and markets
Clients
a
nd
products
Technolo
gy
dynam
ic
s
Organization
al
effectivenes
s
Financial
management
G
overnance,risk,
a
nd
compliance
Insurers look to upgrade core operations,
people power
17. 2014 Property and Casualty Insurance Industry Outlook Innovation leading the way 15
The bottom line
High on the agenda should be transformation
initiatives throughout the organization to achieve
not just greater efficiency, but flexibility and
agility as well. At the same time, insurers should
recognize that changes in systems alone may
not improve their competitive potential without
a corresponding shift in personnel capabilities
and deployment. Talent recruitment and career
development should be redefined to staff
insurers with the skill sets required to fuel the
transformations already underway and still
to come.
Improving flexibility in the operating model requires a
holistic approach, with greater integration of capital
allocation, business processes, technology infrastructure,
and human resource management strategies across the
organization.
On a more fundamental level, insurers will likely consider
adjustments to their employment model. “To overcome
the talent paradox, insurers may broaden recruitment
strategies by determining the basic competencies
required for hard-to-fill positions, and then actively
target candidates not just from outside the company, but
beyond the industry as well — for example, hiring out-of-
work teachers with math skills who can be retrained for
a career as an actuary or in analytics,” according to Mr.
Liakopoulos. “They may also look to bolster continuing
education and cross-training programs.”
In addition, insurers may adjust their performance
management and compensation systems to focus more
on developing the talent they already have in-house.
The goal will be not only to improve retention of
highly-skilled, experienced employees at a time when
competition among carriers for talent will likely be fierce,
but to more proactively encourage and facilitate flexibility
and productivity among their entire work force.
Instead of viewing career growth as strictly a vertical
progression within a business unit, carriers might consider
creating a more flexible career lattice, with interested
and deserving individuals given the opportunity and
rewarded for extending their functional skills laterally
across multiple lines of business, or being redeployed to
departments where their specialized skills may be
more valuable.
Strategic
alignment
Operating model
alignment
Core
Transformation
The end game in claims transformation is to hasten turnaround time,
improve productivity, reduce fraud and cut costs while upgrading the
customer experience.
Figure 6. Core system transformations on the rise
18. 16
Data, which is the lifeblood of insurance, is experiencing
exponential growth. That should be a boon for the
industry, but in order to win the information “arms race,”
carriers are being challenged to upgrade their data
management capabilities in underwriting, pricing, and
claims, while grappling with a host of related technological
and liability challenges along the way.
“Developing strategies to better integrate and leverage
existing and emerging data sources within legacy
technology platforms and capabilities is proving to be a
daunting challenge for many in the industry,” says Neal
Baumann, Deloitte Consulting LLP’s global insurance
sector leader. “As more and more carriers look to execute
strategies to drive performance and reduce risk via
leveraging data and analytics, insurers should be prepared
to make the tradeoffs needed to develop capabilities that
they believe will provide them with strategic advantages.
In some cases this might lead to the need to revisit and
modify traditional business and operating models.”
Take the rapidly evolving field of telematics, for example.
Pioneered over a decade ago, telematic offerings have
expanded rapidly in the personal auto market, yet
some carriers say adoption by drivers remains relatively
underwhelming largely due to concerns about the
potentially negative impact on pricing and privacy.
In addition, it takes a lot of investment to realize the
benefits of telematics, and smaller carriers are particularly
challenged due to insufficient historical data for
underwriting and pricing purposes.
In the meantime, as insurers accumulate more and more
data, the threat of cybercrime and growing privacy
exposures are likely to keep insurance company chief
information officers up at night as they ponder more
effective risk management techniques.
Tech can level the playing field as carriers
cope with data challenges
6Focus areas
Competition
and markets
Clients
a
nd
products
Technolo
gy
dynam
ic
s
Organization
al
effectivenes
s
Financial
management
G
overnance,risk,
a
nd
compliance
What's new for 2014?
More economical options on the near horizon will
potentially propel telematics to the level of an industry
disruptor. Large players with the in-house ability to
harness sufficient data to effectively underwrite usage-
based policies may have a competitive advantage for
the moment, but the playing field might soon be leveled
for smaller and regional competitors thanks to external
information aggregators.
Deloitte, for one, has been working with an industry
association to provide a centralized repository to supply
carriers without their own critical mass of data with the
information they will need to underwrite and rate usage-
based auto products. At the same time, alternatives such
as this may provide insurers with the ability to avoid having
to put telematic devices into vehicles by connecting via a
policyholder’s personal mobile device instead.
More economical information-gathering options on the near horizon
may soon propel telematics to the level of an industry disruptor, with
the playing field being leveled for smaller and regional competitors by
external data aggregators.
19. 2014 Property and Casualty Insurance Industry Outlook Innovation leading the way 17
However, apps to facilitate usage-based auto insurance is
just one mobile initiative insurers are likely to adopt as they
look to become a more regular part of their customers’
everyday online lives, while differentiating themselves with
additional value-added services. Look for insurer apps to
more routinely employ time and location data to issue
customized safety alerts, vendor recommendations, and
perhaps even loyalty program discounts.
As more data pours into insurance carrier systems, security
and privacy may become an even bigger enterprise
risk management challenge, rising on the agenda of
senior management and boards. The threat landscape
will continue to evolve as cybercrime transforms, which
means insurers should constantly update their responses.
There also may be speed bumps raised by regulators as
opportunities arise to collect, underwrite, and price policies
based on customer data from additional sources.
“Insurers should also be aware that analytics and
technology development projects may provide the
opportunity for potential tax credits, making such projects
less costly once this factor is accounted for,” according to
Chris Puglia, a partner at Deloitte Tax LLP.
The bottom line
Technology transformations across the enterprise
will be high on insurer radars in 2014. Digital
strategies that more closely engage policyholders
and improve customer experience are no longer
aspirations, but necessities in a mobile-driven
culture and economy. More sophisticated
smartphone apps and aggregated data bureaus
will level the playing field for smaller-sized
insurers and challenge bigger carriers to raise
their game and differentiate their brands on
usage-based insurance. Insurers not interested
in adopting telematics will need to develop
strategic responses to add value in other ways
and discourage customer attrition. To maintain
their reputations and avoid regulatory and liability
challenges, insurers will have to go the extra mile
to assure data privacy and security.
20. 18
Tweaks versus transformations
Running a property and casualty insurance business is
rarely smooth sailing, and not just because the potential
for a major catastrophe costing billions of dollars always
seems to loom ominously on the horizon.
Yet the last few years have been particularly difficult for
those occupying C-Suite positions, as more fundamental
issues are threatening not only short-term results on their
balance sheets, but challenging the long-term viability of
their operating models as well.
“There are usually tactical steps insurers could take to
make a short-term course correction, and tweaks can
often be implemented to adjust systems and processes,”
according to Gary Shaw, U.S. Insurance Leader for
Deloitte LLP. “But to capitalize on emerging opportunities
instead of being undermined by the disruptive changes
likely to alter the competitive landscape, top insurance
executives should be more predisposed towards bigger-
picture innovations.”
Disruptions already underway
There has already been significant organizational
disruption going on among a growing number of
insurers. Many have made large-scale investments in
technology, replacing core systems for claims, policy
administration, and finance. Their chief challenge now is
how to effectively leverage the new systems they’ve put
in place and maintain their momentum with additional
innovations in personnel, products, and culture.
Others who have up until now made ad-hoc, shorter-
term adjustments should be considering how a bolder
investment in more transformational upgrades might
better position their companies to remain competitive not
just in 2014, but for the remainder of what is likely to be
a tumultuous decade ahead.
Where should insurers go
from here?
Some thoughts for the road
Among the questions insurers should be asking
themselves in the year ahead:
• How might insurers be more innovative to counteract
the trend towards a slow-growing and commoditizing
market? Which new types of products and consumer
segments might insurers serve to expand the overall
premium pie, rather than battle over the business already
being written?
• Would a strategic merger or acquisition be a more
effective way to deploy excess capital and make up for
difficulties in generating organic growth? Might a deal
be the ticket to achieving scale, rationalizing operating
costs, and expanding market share? Or would a takeover
make more sense in terms of importing new products,
markets, capabilities, or talent?
• How can insurers achieve the maximum return on invest-
ment for their core transformation projects? Is there a
way to dovetail an enhancement of individual talent and
skill sets so that tech system improvements are bolstered
by greater human capital capabilities?
• How might an insurer gather and synthesize new types
of information to gain actionable insights, such as from
telematics or social media? And how can the organiza-
tion improve the way it correlates the data it already
gathers in the normal course of business across lines and
processing systems?
• How should insurers respond to the growing “do-it-
myself” mentality of today’s online consumer? Might
it make sense for certain agency carriers to do more
business directly with customers? If so, how can an
insurer’s processes and systems be adapted to accom-
modate an intermediary-free exchange, and how could
such efforts complement rather than compete with
an existing sales force? For those committed to one
particular distribution option, how can they defend
their books of business against those with different or
multiple alternatives at their disposal?
• How do insurers deal with the strategic implications and
21. 2014 Property and Casualty Insurance Industry Outlook Innovation leading the way 19
cost of regulatory uncertainty? Can they better integrate
regulatory considerations into strategic scenario
planning, involving all C-Suite members rather than just
compliance and risk management? Could nimbleness in
responding to regulatory requirements be turned into a
competitive advantage?
• How might insurers alter the way they recruit and
develop talent so that they close the widening skills
gap in their organizations? And how can they create a
more flexible career path to retain their most valuable
employees while being positioned to quickly move indi-
viduals to areas within the company where their skill sets
are most urgently needed?
• What can insurers do to evolve their finance operation
into more of an internal business partner to help
identify and capitalize on growth opportunities, without
neglecting the function's traditional stewardship and
compliance role? What skill sets need to be developed or
imported to make such a transformation a reality?
Once again, the competitive differentiator for many
might come down to flexibility and innovation. The
economy is rapidly evolving into a more virtual, mobile-
driven, self-service world, with higher expectations for
customer service over multiple platforms. Boundaries
between industries are beginning to blur for many Web
pioneers, with insurance perhaps providing a tempting
target for brand extensions among online retailers and
aggregators.
Yet it’s the insurance industry that has the experience,
expertise, and brainpower in transferring risk. The
question is which carriers will have the vision and ability
to proactively anticipate and adapt to new market
realities. Those that do are more likely not just to survive,
but to prosper as they reposition themselves against
traditional as well as emerging competitors.
“Whatever the challenge, this outlook indicates that
simply maintaining the status quo is likely no longer
a sound business strategy no matter which operating
model is employed by a particular insurer, given the
macro- and microeconomic trends buffeting the industry
from all sides,” says Gary Shaw, U.S. Insurance Leader for
Deloitte LLP.
22. 20
Contacts
Industry leadership
Gary Shaw
Vice Chairman
U.S. Insurance Leader
Deloitte LLP
+1 973 602 6659
gashaw@deloitte.com
Deloitte Center for Financial Services
Jim Eckenrode
Executive Director
Deloitte Center for Financial Services
Deloitte Services LP
+1 617 585 4877
jeckenrode@deloitte.com
Authors
Lead author
Sam Friedman
Research Leader, Insurance
Deloitte Center for Financial Services
Deloitte Services LP
+1 212 436 5521
samfriedman@deloitte.com
Co-authors
Michelle Canaan
Manager
Deloitte Services LP
Nikhil Gokhale
Assistant Manager
Deloitte Services Pvt. Ltd.
Jaykumar Shah
Senior Analyst
Deloitte Services Pvt. Ltd.
The Center wishes to thank the following Deloitte client service professionals for
their insights and contributions to this report:
Neal Baumann, Principal, Deloitte Consulting LLP
Rick Berry, Director, Deloitte Consulting LLP
Greg Domareki, Senior Manager, Deloitte Tax LLP
Tami Frankenfield, Director, Deloitte Consulting LLP
Richard Godfrey, Principal, Deloitte & Touche LLP
Andrew Goldberg, Director, Deloitte Consulting LLP
Ed Hardy, Partner, Deloitte & Touche LLP
Karl Hersch, Principal, Deloitte Consulting LLP
Mark E. Hopkins, Director, Deloitte Consulting LLP
Tom Kaylor, Principal, Deloitte Financial Advisory Services LLP
Daniel Leff, Specialist Leader, Deloitte Consulting LLP
Andy Liakopoulos, Principal, Deloitte Consulting LLP
John Lucker, Principal, Deloitte Consulting LLP
Boris Lukan, Principal, Deloitte Consulting LLP
Andrew N. Mais, Senior Manager, Deloitte Services LP
Howard Mills, Director, Deloitte LLP
Naru Navele, Partner, Deloitte & Touche LLP
Paul Nelson, Principal, Deloitte Consulting LLP
Arun Prasad, Principal, Deloitte Consulting LLP
Chris Puglia, Partner, Deloitte Tax LLP
Sandeep Puri, Director, Deloitte Consulting LLP
Ash Raghavan, Principal, Deloitte & Touche LLP
Celia Ramos, Principal, Deloitte Consulting LLP
Donna Schlegel, Director, Deloitte Consulting LLP
Daniel Shum, Partner, Deloitte LLP, Canada
Doug Sweeney, Director, Deloitte FAS LLP
Adam Thomas, Senior Manager, Deloitte & Touche LLP
Christopher Tutoki, Partner, Deloitte Tax LLP
Doug Welch, Director, Deloitte Consulting LLP
Ed Wilkins, Partner, Deloitte & Touche LLP
Marc Zimmerman, Director, Deloitte Consulting LLP
Rita Zona, Principal, Deloitte Consulting LLP
The Center wishes to thank the following Deloitte professionals for their support
and contribution to the report:
Rachel Moses, Senior Marketing Specialist, Deloitte Services LP
Courtney Scanlin, Insurance Marketing Leader, Deloitte Services LP
Aditya Singh, Assistant Manager, Deloitte Services India Pvt. Ltd.
23. 2014 Property and Casualty Insurance Industry Outlook Innovation leading the way 21