The Property and Casualty (P&C) insurance industry is in the midst of a perfect storm of challenges. Low profitability has been prevalent, particularly in the last several years. The rise of emerging insurance technology companies is creating steep, agile competition. Geopolitical unrest – such as Brexit and the Trump administration’s proposed policy changes to the H1-B visa program, deregulation, and tax cuts – is causing significant uncertainty in the P&C insurance industry. The evolution of the customer base and their demands for access, communication, and new offerings through multiple channels and technologies will require dramatic changes to the way P&C insurers deliver services. And although business and IT support services in the P&C insurance industry are mature, optimizing operations continues to be an ongoing challenge.
But P&C insurers can turn this gloomy picture into blue skies of near- and long-term value by accelerating implementation and adoption of digital technology, in particular analytics, automation, and advanced IT.
This executive viewpoint provides an overview of the challenges and risks P&C insurers face today and explores several critical areas that will allow them to weather the storm of uncertainty and create a competitive edge.