In this edition, we highlight challenges general insurers will face over the coming year, as well as opportunities we think could make a real difference.
General Insurance Journal - August 2015
EY ITEM Club Outlook for Financial Services Summer 2015
Specialty: our insights magazine for the specialty insurance and reinsurance market
Consumerization and the digital enterprise
Fostering sustainability in financial services
Building a model risk management capability
The future of distribution
Eurozone Forecast: Outlook for financial services - Spring 2015
Navigating change to seize new global opportunities
Major regulatory change. The rise of emerging markets. Ongoing economic uncertainty. Technology-driven turbulence. Increasing consumer expectations.
These are the primary challenges and issues faced by global insurance executives. These challenges also offer the key to future profitability for insurers who make the right strategic, investment, organisational and operational changes.
Our Global Insurance Center was created to help insurers around the world successfully meet these challenges. We can help you ask the right questions, set priorities and define the action plans needed to succeed in the fast-shifting insurance landscape.
Our global network of insurance professionals provides guidance and insight on pivotal areas in the insurance industry today, including:
- Are you ready for Solvency II?
- Actuarial and risk management strategies
As the insurance market undergoes radical change, insurance companies face a difficult balancing act. They must identify and assess new options for value creation while continuing to manage risks and meet emerging regulatory requirements such as Solvency II and IFRS.
The combination of our dedicated actuarial and risk professionals and close partnerships with related practices across EY provides truly integrated services across all disciplines in the insurance industry. See where our more than 1000 actuarial and insurance risk professionals serve clients around the world.
Our deep global knowledge comes from our work with insurance companies, banks, pension funds, private equity firms, sovereign funds and local regulators and enables us to answer key challenges the industry faces.
Click the magnifying glass to learn more about our actuarial and risk management expertise, and how we use this to enhance financial performance and the effectiveness of actuarial and risk management functions.
Leverage our knowledge by contacting our actuarial insurance team leaders in EMEIA, the Americas, Asia-Pacific or Japan.
Explore the service areas below to learn more about our actuarial and risk management expertise.
To improve cost-effectiveness, insurance companies have a broad range of options: integrated finance solutions, actuarial and risk reporting processes, selective offshoring and shared service centers for improving standardization and output quality. We help companies simplify their actuarial infrastructure and achieve cost efficiency by streamlining or offshoring/outsourcing their actuarial and finance reporting processes.Actuarial and risk models are becoming increasingly crucial to business operations. Although a fast close of actuarial reporting remains important, regulatory focus and requirements to put a robust control environment around models are also increasing. We help companies make their actuarial and risk models efficient and fit for purpose.The global insurance industry is facing a wave of new regulations and reporting requirements. It is crucial for companies to understand the micro and macro effects of new reporting requirements—the importance of reported figures and the wider implications for strategy and operations. We help companies understand and prepare efficient external and internal reporting frameworks by providing actuarial services that are part of integrated multi-disciplinary solutions.With long experience as auditors and more broadly on assurance engagements, our multi-disciplinary actuarial teams give comfort to Boards on key strategic items including managing supplementary financial information and meeting regulatory requirements.The insurance industry faces many challenges: political changes, economics, product innovation, technology advances, competition from other financial sectors and changing customer behavior. We prepare companies for these changes by providing practical insights on consumer buying patterns. We also help you understand which customers truly create value so you can build strategies to enhance these high-value relationships.As companies revisit and optimize their portfolios, they look to acquire and consolidate more attractive businesses, and dispose of businesses in markets where they cannot compete. With depressed valuations in many insurance markets and the shifting strategies of multinationals, the mergers and acquisitions market is poised to become more active. Our experienced Transaction Advisory team provides integrated services to help companies with valuations and post-merger integration.As capital becomes scarce and competition from other financial institutions increases, insurers are evolving from static to dynamic optimization of risk portfolios. We help companies optimize their risk portfolios under current rules as well as expected new regulations such as Solvency II.Asset management is closely linked with capital optimization, product optimization and financial modeling. Facing innovation and competition from other financial sectors, insurers must develop optimal asset management strategies. We help companies with asset liability management, derivative pricing and performance management.
- Economic capital framework and modeling challenges
- Recovery and resolution planning for insurers
- Financial Services: Bringing the broader perspective
- Five trends to watch in annuities
- Insurers prepare for market-consistent frameworks
- Be prepared for IFRS/accounting changes
We are increasingly living in a global economy – with trade and inbound and outbound investment a fact of life. It's no wonder capital markets have long advocated for globally recognised accounting standards.
Until recently, that common accounting language has been a missing link. Now, policymakers, lawmakers and regulators are working alongside standard-setters to provide a single set of high-quality, global accounting principles.
Benefit from our timely insights as you prepare for this transition.
- Customer agenda
The buying behaviours, attitudes and preferences of insurance customers worldwide are changing. To understand this transformation, insurers need to determine how they must adapt to attract, deepen and preserve customer relationships.
- Governance facing the industry today
We, along with Tapestry Network, established the Insurance Governance Leadership Network (IGLN), a global network centered around non-executive directors from a select group of the largest insurers from Europe, North America and Asia. The IGLN provides a peer-to-peer platform for participants to discuss critical issues facing the industry globally. Its primary focus is the non-executive director, but it also engages senior management (notably chief risk officers) and regulators, all of whom are committed to outstanding governance and supervision in support of the mission to build strong, enduring, and trustworthy insurance institutions.
Tapestry Briefings – A View from the Boardroom:
- Operations and technology: implementing efficiencies
In recent years, a new generation of technologies has created a renewed appetite amongst insurers for using IT to manage claims more effectively.
Yet there are still a large number of challenges to be overcome in delivering the anticipated business benefits. Are you achieving the improved claims performance you need from your IT investments?
- The emergence of emerging markets
The global economy is at a turning point. Fast-growth economies in Asia, the Middle East, Africa, Latin America and Eastern Europe now form almost half of global GDP and, in 2010, they contributed 70% to overall global growth.
These trends are accelerating. By 2050, fast-growth economies are projected to account for 65% of the global economy. In contrast, most developed markets are still struggling to recover after the global recession. For many businesses, their very survival depends on pursuing a growth agenda. This might include expanding into new markets and sectors, finding new ways to innovate or taking new approaches to talent. But there’s one key question that must be answered: how can your insurance business make the most of the many opportunities that exist?
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