World Insurance Report 2020. The global insurance industry’s outlook is improving. What factors help explain the industry’s strong performance? FinTech in 2020: Five Global Trends to Watch Looking ahead to 2020, FinTech is at a tipping point. Instead insurers face a range of obstacles including persistently low investment yields, tightening regulation and overcapacity in many markets. China’s Changing Relationships. At the business-segment level, preliminary reports revealed some important trends: Of course, not all opportunities are open to every player. Set preferences for tailored content suggestions across the site, Insurance 2020: A Quiet Revolution - The Future of Global Insurance M&A. In Asia–Pacific (APAC), on the other hand, the insurance industry grew in all three segments, with health generating double-digit growth. As digital adoption is now mainstream across generations and willingness to purchase insurance from BigTechs is increasing, the World Insurance Report 2020 from Capgemini and Efma explores the changing trust equation between insurers and customers, and how insurance companies can use hyper-personalization to address it. We examine key market structure elements, including growth and profitability, M&A, and distribution. report, we provide a global view of the P&C industry using proprietary McKinsey data sources, including our Global Insurance Pools database, power curve analysis, and Insurance 360 cost benchmarks. Insurance companies therefore need to work out their own strategies based on an in-depth understanding of current and future trends so they can re-examine their product mix, geographic focus, and capabilities. A pick-up in global premiums is forecast, but the industry should not expect a return to the old ways. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. cookies, Read our latest thinking on global insurance trends, Global Insurance Industry Insights: An in-depth perspective. Through honest conversations with over 200 C-suite insurance executives throughout EMEA, we have worked with Financial Times Remark to identify and analyse four key insurance trends that will shape the future of the industry as we know it. Agile insurers that reinvent their consumer engagement models, digitize distribution and operations, and embrace big data and analytics will lead the industry. tab, Engineering, Construction & Building Materials, McKinsey Institute for Black Economic Mobility. Most transformations fail. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. PDF | On Jan 1, 2020, Antonella Cappiello published The Technological Disruption of Insurance Industry: A Review | Find, read and cite all the research you need on ResearchGate The report describes global trends in the insurance industry, leveraging the McKinsey Global Insurance … hereLearn more about cookies, Opens in new 2020 Global Marketing Trends: Bringing authenticity to our digital age O UR FIRST GLOBAL Marketing Trends report is, in many ways, a response to this Fourth Industrial Revolution. Yet, it’s not a technology report. For more, download the full report on which this article is based, Global Insurance Industry Insights: An in-depth perspective (PDF–2.7MB). We use cookies essential for this site to function well. Use minimal essential Digital upends old models. We'll email you when new articles are published on this topic. It also outlines imperatives and … embedded in insurance business models. Never miss an insight. Select topics and stay current with our latest insights, Global insurance insights: An overview of recent trends in life, P&C, and health. Start adding content to your list by clicking on the star icon included in each card. Those companies that identify new trends, prepare for change to come, and adjust to the changing landscape may become prominent. What factors help explain the industry’s performance? Given the pandemic’s impact on employment, business activity, and trade, global nonlife premiums are expected to be flat for full-year 2020, including a 1% decline in advanced markets. The work on … With sustainable growth getting harder to achieve, M&A is again taking on greater strategic importance. With life eroding and property and casualty (P&C) flattening, the mature markets have exhibited slower growth rates than insurance in emerging markets, and the figures in our report are beginning to reflect these major fault lines by geography and business segment. The vast majority of life and annuities executives believe product development is a core competency, yet just over one in ten think their process delivers strong product innovation.To get there, insurers can learn from leading technology and consumer companies and implement tactical changes in their approach to the organization, the process, and talent. Sweeping technological advances have created major growth opportunities in the insurance industry, both for industry leaders and for innovative third-party providers. Stephan Binder is a senior partner in McKinsey’s Zurich office, and Jörg Mußhoff is a senior partner in the Düsseldorf office. Motor and other traditional P&C lines, both personal and commercial, therefore will likely face a slowing growth in the coming years. 3. Building on more than fourteen years' experience, Finalta combines performance benchmark data and best-practice knowledge from 350 banks, insurers, and telcos in over 50 countries to generate insights on how to achieve superior performance. collaboration with select social media and trusted analytics partners Press enter to select and open the results on a new page. Compared to other developed nations, China’s economy is relatively … our use of cookies, and The Insurance industry is not immune to this megatrend, and digital driven changes are taking place across its value chain. Something went wrong. KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal entity. The global life insurance industry has seen significant changes over the past decade.Developing economies—predominantly emerging markets in Asia that were formerly small contributors—have become global growth drivers and now account for more than half of global premium growth (Exhibit 1) and 84 percent of individual annuities growth (Exhibit 2). Learn more about cookies, Opens in new But with opportunities come significant challenges. Global AuM growth will be driven by pension funds, HNWIs and sovereign wealth funds In 2012, the AM industry managed 36.5% of assets held by pension funds, sovereign wealth funds (SWF), insurance companies, mass affluent and high-net-worth individuals (HNWI).2 Our model predicts that by 2020 the AM industry will manage Forecasted market size for Insurtech industry in the U.S. 2016-2020, by type; Level of underwriting automation in special commercial insurance industry 2016 Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. Foreword We are pleased to present Global Insurance Industry Insights, the seventh edition of McKinsey’s annual in-depth analysis of the global insurance industry, based on our ... 2016 and also presents a forward-looking view until 2020, including the factors contributing PwC Insurance 2020: Turning change into opportunity, January 2012 5 Technological: Advances in software and hardware are transforming ‘big data’ into actionable insights As the insurance industry reaps productivity gains from the most recent wave of automation, new technologies are significantly enhancing operational KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. Must read articles from our Take on Tomorrow seriesExplore series. As PwC’s 2019 fintech survey underlined, customers now expect far more than just efficiency and speed — they’re demanding 'wow' factors, such as personalisation, flexible all-channel engagement and solutions that cut across traditional industry boundaries. For more, download the full report on which this article is based, Global Insurance Industry Insights: An in-depth perspective (PDF–2.7MB). Are you ready to profit from the coming revolution? Insurers are operating in a world where the goal of long-term growth seems to be getting further away. © 2017 - Fri Mar 12 16:14:58 UTC 2021 PwC. tab. All rights reserved. FinTech startups are moving out of niche use cases and are beginning to operate at scale. 2020-21F 2019F 2014-18 Global life insurance premium growth in real terms, actual and forecast Global non-life insurance premium growth in real terms, actual and forecast Source: Swiss Re Institute. The mature economies of Europe and North America are moving towards recovery, while the emerging markets of Asia and Latin America continue to grow. Our 2020 Global Insurance Outlook, along with the detailed regional Outlooks, highlights this unique moment for the industry: never before has such great potential been side-by-side with significant risks. 4 Insurance 2020’s central message is that whatever organisations are doing in the short-term – whether dealing with market Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. The global insurtech market size was valued at USD 2.72 billion in 2020. Meanwhile, consumers’ shift to hybrid behavior is now largely complete in developed markets and is accelerating in developing markets with the spread of mobile phones. Learn about Instead, we predict the next few years will see a quiet revolution in global insurance M&A. Indeed, we expect growth’s center of gravity to continue to shift to Asia and other emerging markets, reflecting not only the growth of the consumer middle class in these economies but also a slowdown in P&C growth in mature markets due to unprecedented advances in technology, for example, sensors for safer motor vehicles and risk prevention in homes, offices, and factories. Growth in 2014 was also notable because it was higher than nominal GDP growth for the first time in five years. Bain Insights dig deep into the complex challenges that healthcare companies—including hospitals, insurers and medtech firms—face in patient care. Overall, the team found that global insurance sector growth is expected to remain weak, though there are many reasons for optimism. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. But the game is changing. Mature markets in North America and Western Europe required “heavy lifting” to address these trends. Preliminary reports suggest that Health showed the … tunity to thank the McKinsey Global Institute, as well as the authors of the above publications – in particular Jacques Bughin, Senior Partner in Brussels, and James Manyika, Senior Partner in San Francisco, for their expertise, insights, inspira - tion and guidance. Demanding customers, new competitors and a changing set of challenges are transforming the insurance industry. An overview of McKinsey’s Global Insurance Pools 35. Please see www.pwc.com/structure for further details. Subscribed to {PRACTICE_NAME} email alerts. People create and sustain change. Stay ahead in a rapidly changing world. Our flagship business publication has been defining and informing the senior-management agenda since 1964. They cover the major trends, disruptions and innovations that are impacting the global insurance industry, and offer recommendations for how all types of insurers can navigate the challenges and seize the opportunity. Please try again later. In 2014, the insurance industrystaged an impressive recovery, with anticipated global growth of 6.3 percent—far exceeding the 2.8 percent reported in 2013—and total premiums reaching EUR 3.8 trillion. The continuing low-interest-rate environment, a challenging equity market, and tighter regulatory regimes have certainly played a prominent role. The pharmaceutical commercial model in 2020 Local is important but with a shift from volume to value 28 Wearables and mHealth applications in 2020 Measuring quality of life not just clinical indicators 12 The pharmaceutical enterprise configuration – the back office in 2020 Single, global organisation responsible for insight enablement 32 It is expected to expand at a compound annual growth rate (CAGR) of 48.8% from 2021 to 2028. A pick-up in global premiums is forecast, but the industry should not expect a … Reinvent your business. 2019 global insurance trends and forecasts. The seventh edition of McKinsey’s annual in-depth analysis of the global insurance industry, based on our proprietary Global Insurance Pools database, found the industry in the midst of turbulent times. Please click "Accept" to help us improve its usefulness with additional cookies. McKinsey & Company, a global management consulting firm for governments and NGOs, recently submitted a blockchain Technology report to the US Federal Advisory Committee on Insurance. About the author(s) Stephan Binder is a senior partner in McKinsey’s Zurich office , and Jörg Mußhoff is a senior partner in the Düsseldorf office . Growth in the Americas region has been characterized by strong progress in health and moderate growth in the P&C segment, while life is expected to be volatile, owing to changes in US regulations—including the US Department of Labor’s fiduciary rule and new US tax guidelines. Unleash their potential. And in the past few years, natural disasters have led insurers and reinsurers to pay hundreds of billions of dollars in claim… The mature economies of Europe and North America are moving towards recovery, while the emerging markets of Asia and Latin America continue to grow. As insurers adapt their business models to this new environment, the strategic importance of M&A will only increase. Subscribe to Bain Insights, our monthly look at the critical issues facing global businesses. Global Insurance Insights: A detailed analysis of trends that shape the industry JULY 2015 The below article is an extract of the annual white paper of the McKinsey Global Insurance Pools team. These changes, along with the impact of price-comparison websites, other technology developments, and the race to go digital, are tectonic shifts forcing insurers to adjust their business models. Insurers and industry stakeholders have been using Insurance 2020 to help them judge the implications of these trends for their particular organisations and determine the strategies needed to respond. At the regional level, Europe, the Middle East, and Africa (EMEA) recorded moderate growth in the P&C and health-insurance segments, while life is expected to decline. The increasing need for digitization of insurance services is expected to propel the market growth Flip the odds. As a notable achievement in the financial-services world, the insurance industry has grown economically stronger in the past two decades after sustaining $45 billion (2020 prices) in insured losses from the terrorist attacks of September 11, 2001—then the costliest event in the history of insurance globally. However we do not expect transaction volumes to recover along the same lines as during the last decade. The global insurance industry’s outlook is improving. 3 However, despite these challenges, the industry may yet rebound to 3% growth in 2021, led by a potential 7% boost in emerging regions (figure 1). Please use UP and DOWN arrow keys to review autocomplete results. Where they once catered to speciic demographics, the sector is now providing services across the inancial services