The near-term performance of the global insurance industry is expected to remain strong. This is despite the fact that global GDP forecasts and life- and non-life insurance projections have been revised downward.
Market Dynamics
Inflation is expected to impact the entire insurance value chain—from customer acquisition costs to claims expense and indemnity. The pressures from wages, healthcare, energy and social inflation are also likely to persist.
Insurers will also need to plan for continued disruption. Accenture’s Global Disruption Index—a composite measure that covers economic, social, geopolitical, climate, consumer and technology disruption—shows that levels of disruption have increased by 200% from 2017 to 2022. Previously, the Index rose by a mere 4% from 2011 to 2016.
Insurance will reinvent and expand in new directions
Reinvention will be a central strategic driver for insurers. In our recent Total Enterprise Reinvention report, 61% of insurance executives say shifting consumer preferences have accelerated their reinvention strategy. In 2023, there will be growing opportunities for insurers to expand their portfolio across health and wealth protection products, leading to further industry convergence. Prevention-oriented products and services will become increasingly popular for insurers. For example, by promoting sustainable driving habits, an insurer supports safer roads and helps reduce carbon emissions.
To achieve a competitive advantage, insurers need to innovate in new products, such as: