The insurance industry faces a potential upheaval that could challenge incumbents and remake the industry in a new form. To win in the marketplace, companies need to think in terms of revolution, not evolution.
That was our thinking when, in Q2 2014, KPMG surveyed 95 senior insurance executives in the United States to obtain a clear and up-to-date view of the industry. What we found out was this: evolution is happening – not revolution – and that evolution has only just begun.
10 STEPS TO REVOLUTION
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If there were ever a time for top-down leadership to drive change, now would be it.
Laura J. Hay, National Sector Leader, Insurance
Select highlights and survey results from the report.
Over the next 12 months, a majority of the executives surveyed (54 percent) believe their company is likely to be involved in M&A as a buyer, up from last year (34 percent).
Q: What is the likelihood that your firm will be in a marger/acquisition over the next 12 months?
According to the insurance executives we surveyed, the top three "drivers of transformation" over the next three to five years are customer demand (52 percent), coping with change in technology (45 percent), and domestic competition (42 percent).
Q: Over the next three to five years, what will be the top three drivers of transformation for your business?
The insurance industry as a whole is engaged in evolutionary change. Companies that take revolutionary actions now will be the winners in the new insurance marketplace. Here is where to start: