Over-regulation biggest threat say insurance bosses
Insurance company chief executives are most concerned about over-regulation of the industry according to a global survey. The annual report from PwC found that 95 per cent of the CEOs fear growth in the sector will be restricted by regulations, although the same number expect revenues to grow over the next three years.
New entrants into the market are also seen as a threat by 65 per cent and technology is considered a high risk by 69 per cent. Around two thirds of respondents are also cautious about consumers’ spending habits changing.
Almost three-quarters of insurance CEO’s say their business is making significant changes to the way they use technology to assess risk and meet stakeholder changes. “Customers are demanding a more interactive experience and continue to focus on cost. FinTech companies operating in the insurance space are knocking at the door and are more than happy to set new competitive benchmarks for customer experience,” Jonathan Howe of PwC commented.
Howe said that limited interactions with customers is limiting the value of the vast amount of data held and called for insurers to look at how they can change threats into opportunities: “With such rapid technological change, insurers have the choice to determine whether they are part of the disruption or one of the disrupted.”
StanCorp takeover gets approval
Regulators in the US and Japan have approved the takeover of New York-listed StanCorp Financial Group Inc. by Meiji Yasuda Life Insurance Company. The merger was announced in the summer of 2015 and is now expected to close on March 7, 2016. Meiji is the third largest life insurance company in Japan and is also the oldest. The StanCorp acquisition builds on its international portfolio which includes Poland, China and existing US operations.
Insurer recognized for diversity
For the third year in a row
MetLife has been named as the highest-ranking insurance company in the ‘Div50’ which recognizes firms which offer high levels of multicultural business opportunities.
MetLife is one of fifty firms which are considered to be leaders in offering opportunities to businesses owned by women and minorities based on factors such as the volume, consistency and quality of business opportunities a company grants to multicultural suppliers.
