Insurance Insights - December 2017 | KPMG | IE

Insurance Insights - December 2017

Insurance Insights - December 2017

A collection of KPMG's latest publications and articles which focus on developments in, and issues facing the insurance industry.

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IFRS 9 | Changes warranting immediate attention

The IASB has changed IFRS 9’s requirements in the following areas of financial instruments accounting.

  • Prepayment features with negative compensation.
  • Modification of financial liabilities that do not result in derecognition.

Both changes could impact profit or loss and significantly affect companies preparing financial statements for 2017. Read more.

Insurance CEOs face new risks, new requirements

Based on KPMG’s recent survey of over 100 insurance CEOs, emerging technology, operational risks and regulatory risks were named their top three concerns and many executives are improving their risk management capabilities – 76 percent are spending ‘much more’ time on scenario planning and 70 percent plan to increase investment into their governance and risk functions. Despite this progress, we believe insurers have to go deeper and think differently.

In the second article of our Insurance CEO outlook series, Picking up the pace, we look at how insurance executives and their risk managers can keep up with the pace of change and face today’s new risks and new requirements.

In our first article, Going for growth, Laura Hay, KPMG’s Global Head of Insurance, shares insight into why Insurance executives are bullish about their company’s growth prospects - with 85 percent of them voicing confidence in the short-term. However, they also recognise disruption is now upon them making sustainable growth more challenging.

What Drives Today’s Multi-Dimensional Consumer?

We are excited to announce a new KPMG report, Me, My Life, My Wallet, designed to help businesses understand the increasingly complex forces that influence decision-making and preferences of today’s and tomorrow’s multi-dimensional consumers. With surprising survey findings from across the US, UK, India and China, the report is based on comprehensive, customer-focused research methodology from KPMG’s Global Customer Center of Excellence and the KPMG Innovation Labs.

New Fintech Benchmarking Report | How global financial institutions are embracing fintech opportunity to evolve and grow

Fintech is one of the biggest disruptors of our time for financial institutions – whether banks, insurers, or asset management companies. It is also one of the greatest opportunities, as the industry fundamentally transforms around the customer, emerging digital technologies and new business models.

To better understand how companies are evolving to respond to this new paradigm, we surveyed 168 financial institutions from 36 countries, and interviewed executives from leading financial institutions, as well as our own professionals, on how companies are Forging the future with fintech.

Insurance customer engagement in a digital world

Insurance has traditionally been a transactional and commoditised sector where it is difficult to sustain customer engagement outside a claim or renewal. But insurers are acutely aware that it must change – customers are expecting enhanced experience, and competition is increasingly fierce from insurtech and non-traditional competitors entering the industry.

What can insurers do to up their game and where should they start? In The Digital Insurer’s (TDI) November Insurtech Insights, we outlined five key components for insurers to drive greater customer engagement, which include data mining and AI, changing the operating model and going beyond insurance.

Segmentation and technology in the digital age: How customer expectations drive effective technology strategies, looks at the importance for insurers to find the balance between digital and human advisors to support their go-to-market strategy. New technologies should be adopted according to their customer segments and expectations, at each stage of their engagement journey. This article also outlines the four steps for insurers to consider to create an effective segment-driven strategy.

The rise of digital ecosystem insurance products

Many insurers around the world are embracing a digital future through digital insurance ecosystems. Participating in or partnering with companies within these digital ecosystems allows insurers to sell targeted products to customer communities on a preferred access basis, which presents significant risks to the traditional model – and even bigger opportunities for insurers willing to embrace innovation.

In our latest article, published in The Digital Insurer (TDI)’s October newsletter, we look at The Rise of Digital Ecosystem Insurance Products, and how they offer insurers tremendous value to improve distribution and customer reach. We also examine various innovative use and examples of digital ecosystem products around the world, and what insurers should consider when engaging with digital ecosystems.

How customer expectations drive effective technology strategies for insurers | “Should I replace human advisors and customer services reps with robo-advisors and chatbots?”

Automation offers tremendous opportunities for insurers, yet the discussions around the use of new technologies is often binary – either digital or human. These positions miss the mark.

A technology strategy needs to be designed for customers and consider the varying desires and expectations they have of their insurer. In The Digital Insurer’s (TDI) latest Insurtech Insights, we highlight the importance of finding the right balance for each customer segment, and outline four key areas for insurers to consider when creating an effective customer segment-driven technology strategy.

Webcast | No time to watch and wait, insurers globally start to tackle IFRS 17 and 9

The new reporting standards – IFRS 17 and 9 – will have a significant impact for insurers. This has many asking, ‘how do my implementation plans compare to my peers?’

To help answer this question and find out how well-prepared insurance companies are for implementation, KPMG International surveyed insurers globally to benchmark IFRS 17 and IFRS 9 readiness. Survey respondents came from over 20 countries, including 15 out of the 20 largest insurers in the Forbes 2017 Global 2000 that report using IFRS.

Join us 13 and 14 December for an exclusive briefing on the findings from our survey including where insurers are on their journey, some of the key challenges they are experiencing and what they need to do now to move efficiently from assessment to implementation.

  • Date: Wednesday 13 December 2017
    Time: 9.00am (EST) / 2.00pm (GMT) / 3.00pm (CET)
  • Date: Thursday 14 December 2017 (on demand)
    Time: 9.00am (HK) / 12.00pm (AEST)

This webcast will last approximately 60 minutes.

Register here.

Following this webcast, participants should be able to explain at a high level:•the current readiness of the industry to implement IFRS 17 and IFRS 9

  • the biggest impacts and challenges insurers around the world are currently facing, covering both conceptual and practical challenges
  • the near-term steps they need to take in order to progress on their implementation journey.

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