2012 Insurance Outlook Survey
-
Upload
saket-swarnkar -
Category
Documents
-
view
215 -
download
0
Transcript of 2012 Insurance Outlook Survey
-
7/30/2019 2012 Insurance Outlook Survey
1/24
Insurance Industry
Outlook Survey:
Executives Focus on Efficiency,IT, and Talent amid Slow Growth
and Regulatory Challenges
kpmg.com
-
7/30/2019 2012 Insurance Outlook Survey
2/24
KPMG LLP (KPMG), the audit, tax, and advisory firm, surveyed
C-suite and other top-level executives in the insurance industry
during the second quarter of 2012.
Participants were asked about business conditions in their sector,
the most significant revenue growth opportunities, and any barriersto growth that may exist. They were also asked a variety of questions
about the economy, including factors they perceive might impede or
support their sectors recovery, and to assess the impact advancing
technologies may have on their business model. These responses
were compared to the findings of a similar survey conducted among
industry executives in the second quarter of 2011.
KPMGs
Industry Outlook Survey
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent membefirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent membefirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
3/24
Contents
Foreword 2
Key Findings 4
Moving Forward in a Slow Market 6
In Pursuit of Growth and Opportunity 9Capital Spending and Investing 10
Risk and Regulatory Challenges 12
Data Analytics and Digital Marketing Channels 15
Hope for Recovery Remains on the Horizon 17
Revenue 17
Headcount 18
Conclusion 20
KPMG: A Leader in Serving the Insurance Industry 21
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
4/24
2 | 2012Insurance Industry Outlook Survey
Foreword
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent membefirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
5/24
2012Insurance Industry Outlook Survey | 3
As the insurance industry continues to regain its footing while confronting newand pending capital, regulatory, and compliance requirements, KPMG has again
reached out to dozens of senior insurance executives in the United States togather information about current industry conditions and perspectives on future
challenges.
What follows on these pages is a report that creates a picture of an evolving
industry one that is challenging its business model, seeking new ideas forgrowth, and one that is wrestling with how to leverage tradition and new
approaches.
Our intention in publishing this survey report is to both share information from
industry insiders and to spark conversation and debate about the key issues thatare shaping the contours of the industry landscape.
On behalf of KPMG, I would like to thank those who participated in this survey.I hope the findings are useful to you in addressing market challenges and
opportunities. I also welcome the chance to discuss this study and its implicationsfor your business in the year ahead.
Laura J. Hay
National Sector Leader, InsuranceKPMG LLP
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
6/24
4 | 2012Insurance Industry Outlook Survey
Key Findings
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent membefirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
7/24
2012Insurance Industry Outlook Survey | 5
Against a backdrop of complex and still-unclear
regulatory demands that have emerged from thecrisis in the financial service industry, insurance
executives who participated in the 2012 KPMG
Insurance Industry Outlook Survey say operational
process improvements and technology
enhancements aimed at strengthening consumer
connectivity and productivity are at the top of their
agenda going forward.
The executives find themselves operating in an environment ofnot only slow growth and pricing pressure, but also one where
low interest rates are forcing a reexamination of the traditionalbusiness model and directly affecting their bottom line.
This report is drawn from the responses of 102 insurance
executives from large, U.S.-based companies. The majority ofrespondents (41 percent) represent companies with annual
revenue between $1 billion and $10 billion, while 31 percent arefrom companies with annual revenue between $100 million and
$1 billion, and 27 percent with revenue of more than $10 billion.Fifty-four percent of these companies are publicly held and46 percent are privately held.
Following is a summary of a number of the key findings on this
years survey:
Pricingandregulatoryandlegislativepressureswererated
equally (47 percent) as the most significant growth barriersfor insurers in the immediate future.
Whenaskedabouttopinitiatives,21percentofexecutives
cited the improvement of operational processes and related
technology, and 20 percent said navigating significant
changes in the regulatory environment. In particular, this
marks a jump in management focus on regulation, up from12 percent last year.
Intheireffortstoincreaseoperationalefficienciesand
maximize value, 64 percent of respondents plan to increasespending on IT, up from 49 percent in 2011. In particular, mostrespondents foresee their IT investment dollars going toward
improving IT infrastructure, followed by customer growth orservice initiatives, and data warehouses.
M&Aactivityintheinsuranceindustryisexpectedto
continue over the next year. More than half (59 percent) of
sector executives believe their company will be involved in amerger or acquisition, either as buyer or seller, over the next
two years. Of that group, the majority (48 percent) expect tobe the buyers, which was 6 percentage points fewer than theresults reported in the 2011 industry survey.
Withinsurerschallengedtodomorewithfewerresources,
having the right talent is more important than ever. As aresult, many executives plan to increase their focus onkey talent management areas, including performance
management (40 percent), succession planning (39 percent),and development and training (35 percent). In a related
finding, 16 percent of respondents said the lack of qualifiedwork force was a barrier to growth triple the level from
2011 (5 percent).
WhenaskedabouttheirexpectationsfortheU.S.economy
a year from now, 61 percent of sector executives expectmostly modest improvements while 32 percent believe
it will essentially remain the same. However, 70 percentbelieve a substantial economic recovery will not occur until2014 2015 or later.
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
8/24
6 | 2012Insurance Industry Outlook Survey
Moving Forward in a Slow Market
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent membefirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
9/24
2012Insurance Industry Outlook Survey | 7
Challenging market conditions are encouraging insurers to place a
greater emphasis on creating value within their organizations. With
continued slow growth and pricing pressures in play, executives
in this years survey are looking to increase efficiencies and invest
in technology to improve operations and navigate the changing
regulatory landscape. This includes upgrading IT infrastructure and
realizing the value of data analytics in strategic decision making.
Talent management will also play a key role as firms are charged
to do more with fewer resources. Overall, firms are relying on
their core strengths, and divesting assets and pursuing merger
and acquisition strategies, to help fuel growth over the next year.
Meanwhile, they have tempered expectations for the year ahead,
expecting modest revenue gains and little-to-no change in hiring.
Initiatives garnering attentionWhen asked about the top initiatives on the minds ofmanagement over the next two years, 21 percent of executives
cite the need to significantly improve operational processes andrelated technology, followed by 20 percent that list navigating
significant changes in the regulatory environment.
Top management initiatives over the next two years
ey
0
10
20
30
21%20%
15%
13%
11%
9%
4% 4%3%
Significant improvement of operation processes and related technology Navigating significant changes in the regulatory environment Significant investment in organic growth Merger/acquisition Significant changes in business model Significant cost reduction initiatives Significant changes to financial processes and related technology Strategic divestiture of current assets Improve enterprise risk management programs/processes
Operating costs over the next yearFacing many market challenges, 65 percent of executivesforesee continued increases in operating costs over the
next year. While market uncertainty remains, the potentialfor inflation can be viewed as a contributing factor to
these anticipated changes in operating costs, as well asunderwriting performance, excess capacity, and unusually high
catastrophe-related losses.
Key
0
10
20
30
40
50
60
70
65%
16%19%
Increase No change Decrease
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
10/24
8 | 2012Insurance Industry Outlook Survey
Increasing the focus on talentWith insurers challenged to do more with fewer resources,having the right talent is more important than ever. For many
companies, it may be the prime differentiator in achievingsuccess and gaining competitive advantage in the future.
As a result, many executives plan to increase their focuson key talent management areas including performancemanagement (40 percent), succession planning (39 percent),
and development and training (35 percent).
Key areas of focus regarding talent management in
the next two years
Key
0
10
20
30
40
50
40%
Performance management Succession planning
Development/training Retention
Rewards/compensation Acquisition/recruiting
Engagement/communication Diversity
Global talent management/workforce planning
39%35%
32%
25% 25%22%
14%11%
Multiple responses allowed
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent membefirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
11/24
2012Insurance Industry Outlook Survey | 9
In Pursuit of Growth andOpportunity
The pursuit of growth is an ongoing challenge for insurers facedwith evolving regulation and continued market uncertainty.
Not surprisingly, a majority of survey respondents widely view
pricing pressures (47 percent) and regulatory and legislativepressures (47 percent) as the most significant growth barriers
facing their industry over the next year.
Barriers to growth
Key
0
10
20
30
40
50 47%
Pricing pressures Regulatory and legislative pressur
Risk management issues Lack of customer demand
Lack of qualified workforce Increased taxation
47%
20% 20%
16%
11%
Multiple responses allowed
Growth through M&AWithM&Aactivitystillaviablestrategicfactorintheir
continued efforts to drive growth, 59 percent of insurance
executives anticipate that their company will be in a merger oracquisition either as a buyer or seller over the next two years.
Likelihood of M&A activity
ey
0
10
20
30
40
22%
Very likely as a buyer Somewhat likely as a buyer
Very likely as a seller Somewhat likely as a seller
NoplansforM&Aactivity Unsure/dont know
26%
2%
9%
32%
9%
M&A driversMuch of this activity will be largely driven by the ability to gain
access to new markets, according to 56 percent of respondents.Other top drivers cited by executives include regulatory changes(40 percent) and product synergies (31 percent).
Important drivers of alliances, mergers, and acquisitions in
2013
Key
0
10
20
30
40
50
60 56%
Access to new markets Regulatory changes/pressures
Product synergies Access to new technology and produ
Improved use of capital Access to new resources
Strategic divestiture ofcurrent assets
40%
31%28%
25%
18%
11%
Multiple responses allowed
Driving revenueAccording to 37 percent of the executives surveyed, organic
growth is still considered a primary driver of revenue growth,down slightly from 42 percent in 2011. Respondents also see
the introduction of new products (32 percent), price increases(31 percent), and business acquisitions as possessing
significant potential to drive revenue.
Biggest drivers of revenue growth: next 1 3 years 2012
Key
0
10
20
30
4037%
Organic growth1 Introduction of new products
Price increases Acquisition/joint venture
New distribution channels Increased cross-line sales
New opportunities resulting from Expansion to new geographicregulatory changes markets
Stricter underwriting guidelines
32%31%
27%
24%23% 23%
20%
14%
Multiple responses allowed
1 Increased market share in current geographic area 2012 KPMG LLP, a Delaware limited liability par tnership and the U.S. member firm of theKPMG network of independent member firms a ffiliated with KPMG International Cooperative(KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
12/24
10 | 2012Insurance Industry Outlook Survey
Capital Spending and InvestingMost executives (70 percent) indicate they have significant
cash on the balance sheet and are readying to start spending.In fact, 36 percent of that population acknowledges that
investment already is significantly underway. Of those withcash on their balance sheets, technology, strategic acquisitions,
and customer-centric initiatives are top priorities.
Priority investments among those with significant cash
available
Key
0
10
20
30
4036%
Technology Strategic acquisitions
Marketing/customer programs Stock repurchase
Increased dividends Resources
27%
17%
7% 7%6%
Ready to spendSixty-four percent of executives predict their companys capitalspending will increase over the next year, up from 47 percent in
2011. Technology is expected to get the lions share of spendingfollowed by other key areas such as new products and services
business acquisitions, and the regulatory/control environment.
Areas for increased spending over the next year
Key
0
10
20
30
40
50
60
7064%
Information technology New products or services
Acquisition of a business Regulation/control environment
Advertising and marketing Business model transformation
Geographic expansion Employee compensation and train
Research and development Expanding facilities
Green/sustainability initiatives
41%
32%
25%23% 22%
20%
13%
6%4%
1%
Multiple responses allowed
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent membefirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
13/24
2012Insurance Industry Outlook Survey | 11
In their quest to create value, insurers realize the criticalrole information technology will play in their success. When
asked to define the highest priorities when spending ITinvestment dollars, 57 percent of respondents cite improving
IT infrastructure at the top of the list. Other high IT-relatedpriorities include achieving customer growth or service and
investing in data warehouses.
Areas for technology investment 2012
Key
0
10
20
30
40
50
60 57%
IT infrastructure Customer growth or service
Data warehouses Administrative systems
E-commerce Risk modeling and analysis
Forecasting capabilities Cloud computing Accounting systems
37%
30%
21% 21% 21%
12% 12%9%
Multiple responses allowed
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
14/24
12 | 2012Insurance Industry Outlook Survey
Risk and Regulatory ChallengesEvolving regulation and changing marketplace dynamics
have emphasized the need for companies to implement astrong internal risk framework. Asked to identify any existing
challenges preventing the adoption of a formal risk policy,34 percent of survey respondents cited culture and behavior
as a key challenge, while 27 percent believe that processintegration and operational efficiency pose significantobstacles.
Challenges preventing the adoption of a formal risk policy
Key
0
10
20
30
40
34%
Culture and behavior Process integration/efficiencyof operations
Clearly defined roles and responsibilities Governance framework
Shared resources across the organization Dont know
27%25%
19%
12%
19%
Multiple responses allowed
Asked to name the primary focus of their companys enterpriserisk management program over the next year 21 percent ofinsurance executives said it would be to support business
decisions.
Key focus of enterprise risk management program
Key
0
10
20
30
21%
Supporting business decisions Assessment of risk exposures
Improve risk management processes Improve the risk managementstructure
Technology Risk culture and training
19%18%
16%
14%
12%
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent membefirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
15/24
2012Insurance Industry Outlook Survey | 13
Despite obvious challenges, 64 percent of respondentsbelieve their company is at least somewhat prepared to seizeopportunities as a result of public policy and regulatory reform.
Meanwhile, 25 percent report being very prepared.
Ability to seize opportunities from regulatory change
ey
0
10
20
30
40
50
60
7064%
Somewhat prepared Very prepared
Not prepared Dont know
25%
8%
3%
Fifty-five percent of executives say increased federal oversight,if implemented, will be the regulatory change with the greatestimpact on their businesses.
Regulatory changes impacting business the most
Key
0
10
20
30
40
50
6055%
Increased federal oversight Convergence of insurance contracstandards2
Consumer protections Shifting capital requirements
Accounting valuation and disclosure Solvency modernization initiatives
Group and cross-border supervision
33% 32%
20% 19%18%
7%
Multiple responses allowed
2 This survey was performed before June 2012, when certain statements were
made by FASB relative to the insurance contracts standard.
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
16/24
14 | 2012Insurance Industry Outlook Survey
Tax regulationAccording to the executives surveyed, evolving tax regulationis expected to impact their business strategy, with 29 percent
believing it will result in less capital investment.
Potential impact of tax regulation
Key
0
10
20
30
40
29%
Less capital investment IncreasedM&Aactivity
Increased overseas expansion Changing business structure/impato hiring
Increased domestic expansion Don't know
18%
15%13%
11%
35%
Multiple responses allowed
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent membefirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
17/24
2012Insurance Industry Outlook Survey | 15
Data Analytics and DigitalMarketing Channels
Data analytic capabilities are becoming more important in
helping to support strategic decision making throughoutthe insurance industry. In fact, 32 percent of executivesbelieve their companies either have competent data analytic
capabilities or are en route to achieving higher skills in this area.
Data analytics maturity of your company
ey
0
10
20
30
40
32%
Average utilization of analytics, Rapidly moving toward highaverage analytical literacy analytical li teracy
High data analytics literacy Some data analytics capabilities,but low analytical literacy in the workforce
Dont know
26%
21%19%
2%
However, challenges exist for companies trying to enhance
their data analytic capabilities. Thirty-seven percent ofexecutives say that cleansing and maintaining data integrity is
the biggest obstacle toward implementation, while 28 percentcite the complexity of analytic design.
Challenges to implementing sophisticated data analytics
Key
0
10
20
30
4037%
Cleansing and maintaining data integrity Complexity of analytic design toachieve end result
Platform or technology needed to Cost of implementation andsupport analytics ongoing support
Integrating analytic results with Senior management and businesschanges to performance drivers unit support
Lack of skills or vision needed to Volume of data needed toreach analytic capability required support analytics
Legal jurisdiction concerns over Lack of available data to supportdata use analytics
28%27%
25% 25%
19% 18%16%
13%11%
Multiple responses allowed
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
18/24
16 | 2012Insurance Industry Outlook Survey
Exploring digital marketing channelsInsurance executives plan to use digital, social, and mobiletechnologies in a variety of ways over the next 12 months. In
fact, 45 percent have plans to deploy customer-facing mobile
applications, while 41 percent will use social media for externalbrand promotion, and 39 percent expect to use it for recruitingpurposes over the next year.
Digital marketing strategies planned for year ahead
Key
0
10
20
30
40
5045%
Customer-facing mobile applications
Social media for external brand promotion
Social media for recruiting
Social media for customer insight
Mobile-specific customer-facing Web sites
Social media for two-way customer engagement
Social media for enterprise collaboration/knowledge sharing
Creation and distribution of digital media marketing messages using video
3
Enterprise mobile applications
Creation and distribution of digital media internal messages using video
Location-based marketing using mobile technology
Mobile-specific enterprise Web sites (i.e., mobile intranets)
Social media for customer crowd sourcing
Mobile-commerce technologies4
Social media for enterprise crowd sourcing
Social media for enterprise risk management
Don't know
41%39%
36%
30%
26%24%
21%20%
16%
14%
9% 8%
19% 18%16%
8%
Multiple responses allowed
3 Including company-specific external video channels4 Including NFC-enabled payments and mobile wallets
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent membefirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
19/24
2012Insurance Industry Outlook Survey | 17
Hope for Recovery Remainson the Horizon
The U.S. economic recovery continues to be just beyondreach, according to the insurance executives who participatedin this years survey. Seventy percent have pushed back their
expectations for a complete U.S. economic recovery until 2014or later.
ey
0
20
40
60
80
100
2015 or later 2014 2013 2012 2011
43%
27%
29%
1%
58%
2012 (Q2) 2011 (Q2)
38%
4%
Looking forward, executives continue to view external factorsas a much greater concern than internal factors. A large
majority (70 percent) admit to being more concerned aboutthe economy, competition, and the impact of regulatory
changes over their ability to compete or whether they have theright strategic direction internally (30 percent). Nevertheless,more than half (61 percent) say they believe the economy will
experience mostly modest improvements over the next year,while 32 percent predict it will stay the same.
Key
0
20
40
60
80
100
Better next year About the same Worse next year
61%
32%
7%
57%
2012 (Q2) 2011 (Q2)
37%
6%
Revenue
Similar to last years findings, survey respondents reportedan increase in revenue. 53 percent say revenues were up this
year, as compared to 50 percent in 2011.
Key
0
20
40
60
80
100
Better now Same now Worse now
53%
36%
11%
50%
2012 (Q2) 2011 (Q2)
36%
15%
Asked to describe their revenue expectations a year from now,two-thirds (66 percent) of executives predict that revenues will
increase, while 27 percent believe revenues will remain thesame. Again, this mirrors the expectations of the prior year,
when 70 percent and 26 percent, respectively, shared theseviews.
Key
0
20
40
60
80
100
Increase in revenues About the same Decrease in revenues
66%
27%
7%
70%
2012 (Q2) 2011 (Q2)
26%
4%
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
20/24
18 | 2012Insurance Industry Outlook Survey
Headcount
Hiring results remained relatively flat over last year. While
35 percent of respondents say they added personnel, the sameamount (35 percent) acknowledge a decrease in headcount.
Headcount: Current compared to last year
Key
0
20
40
60
80
100
Increase About the same
Decrease
35%
30%
35%
2012 (Q2)
Moving forward, 45 percent of executives say they expect toincrease headcount over the next year.
Headcount: Expected year ahead
Key
0
20
40
60
80
100
Increase About the same
Decrease Unsure/dont know
45%
31%
21%
3%
2012 (Q2)
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent membefirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
21/24
2012Insurance Industry Outlook Survey | 19
Moreover, nearly one-quarter (23 percent) predict their U.S.headcount will not return to prerecession levels until 2015 or
later, and even more (27 percent) believe that they will neverreturn to those levels.
Headcount: Return to prerecession levels
Key
0
10
20
30
40
23%
Already at pre-recession level Second half of 2012
First half of 2013 End of 2013
End of 2014 End of 2015 or later
Never
0%
7%
15%
4%
24%
27%
v
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
22/24
20 | 2012Insurance Industry Outlook Survey
Mounting regulatory and legislative pressures combined with pricing volatilitycontinue to create significant challenges and serve as sizable growth barriers forthe insurance sector. As a result, insurance executives expect to focus much of
their time and energy during the next two years on strategies that will improve theirorganizations operational processes, help navigate through regulatory changes, and
enhance technological capabi lities. To support their efforts, executives plan to investmore on technology to improve their IT infrastructure, enhance client products
and services, and invest in data warehouses. Meanwhile, insurance executivesanticipate modest revenue gains over the next year but remain guarded longer term,not seeing a complete economic recovery until 2014 or beyond.
Conclusion
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent membefirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
23/24
2012Insurance Industry Outlook Survey | 21
The insurance sector continues to face a demanding market environment thatrequires companies to adjust and actively manage change that may impact sales andperformance.
Having the right professional services firmone with the industry depth, knowledge
and insight to help clients address their most pressing issues and achieve theirgoalsis critical. KPMGs Insurance practice includes professionals with the
knowledge, experience, and skills to help our clients address their most pressingchallenges, sort through todays complex business problems, and achieve their goals.
Working with our international network of member firms, we serve clients worldwide
developing insights into major business trends and helping to enhance future plans.Our long-term experience in insurance enables us to offer the company-specific
guidance needed to help our clients become or remain market leaders.
KPMG: A Leader in Servingthe Insurance Industry 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 26321NSS
-
7/30/2019 2012 Insurance Outlook Survey
24/24
KPMG LLP, the audit, tax, and advisory firm, is the U.S. member of KPMG International Cooperative (KPMG International), a Swiss
entity. KPMG Internationals member firms have 145,000 professionals, including more than 8,000 partners, in 152 countries.
20 2 KPMG LLP D l li i d li bili hi d h U S b fi f h KPMG k f i d d b
Key Contacts
For more information about this publication or about KPMGs Insurance practice,please contact the following:
Laura J. Hay
National Sector Leader, Insurance
T: 212-872-3383E: [email protected]
Tom Daugherty
National Insurance Client Leader, Audit
T:614-249-2336E:[email protected]
Ellen Hancock
National Insurance Audit Leader
T:860-297-5581E:[email protected]
Craig Pichette
National Insurance Tax Leader
T:312-665-5267
Sue Townsen
National Advisory Leader, Insurance
T:212-872-2178
David White
National Actuarial Leader
T:404-222-3006E:[email protected]
Matt McCorry
National Leader, Insurance Risk & Performance
T: 212-954-3945E: [email protected]
Lourdes Munier
National Marketing Director, Insurance
T: 201-505-3732E: [email protected]
kpmg.com