Insurance CEOs prioritize investments in technology and focus on cyber resilience, according to KPMG's survey
Asian-based insurers integrating more into the digital ecosystem to improve customer experience
HONG KONG, Dec. 20, 2019 /PRNewswire/ -- Ninety-seven percent of insurance CEOs are confident about their company's growth over the next three years, while 73 percent think disrupting their organisations and the marketplace is top of mind, according to 132 insurance CEOs from 11 countries in the US, Europe and Asia surveyed by KPMG.
Insurers' comfort with their organisation's resilience can be linked back to their recent efforts to ramp up transformation initiatives in their organizations to drive strategic growth or cost objectives. Eighty-five percent of these leaders are also confident about the growth of the insurance industry, and 65 percent are confident about the global economy.
Facing emerging challenges related to climate change, new technologies and geopolitics, insurers are focusing on innovation and cyber controls and making the most effective technology and workforce investments. Almost half of CEOs (47 percent) say they plan to upskill more than half of their entire workforce, particularly in digital capabilities like advanced data visualization and coding, within the next three years.
Much of the focus of organisational disruption deemed needed is around customer centricity, with 64 percent of CEOs saying they believe that they need to significantly improve their understanding of customers.
Erik Bleekrode, Partner, Co-Head of Insurance, KPMG China, said: "With customer needs and expectations and the competitive landscape rapidly evolving, insurers understand that their legacy operating models will no longer be fit for purpose. Given the rising appetite for insurance products among Asia's growing and tech-savvy millennials, particularly in China, insurance companies are increasingly looking to use technology to create new products and drive customer affinity."
The trend of improving customer experience is evident in Asia, where there is a strong customer focus among Asian-based insurers. It is the result of the fact that tech-savvy Millennials are the largest population segment, regulations are enabling more digital services, and other sectors are pushing customer expectations higher.
Lee-Han Tjioe, Partner, Digital Insurance, KPMG China, said: "We see that new entrants, micro-insurers and traditional carriers are integrating more into the digital ecosystem. Insurers are partnering with giant digital retailers to protect parcel deliveries and product warranties, and life insurers are also embracing the trend by leveraging customer data for more effective sales interactions in response to customers' life events."
Most insurance CEOs see importance in building a culture which encourages its workforce to be more innovative, with 85 percent of insurance CEOs saying they want their employees to pursue innovation without worrying about the negative consequences if an initiative fails, yet only 59 percent believe they already have such a culture in place. Sixty-seven percent of insurance CEOs believe that a culture of agility can only be achieved through third-party partnerships.
Walkman Lee, Partner, Co-Head of Insurance, KPMG China, commented: "Traditional insurers are actually in a tremendous position to succeed in innovation, given their capabilities in risk management and large customer bases upon which they can test best practices, new services and channels. Insurers must adopt agile operating models, complementary technology and data capabilities, to become more responsive, faster at introducing products, and better at building effective partnerships and the required digital workforce."
About KPMG China
KPMG member firms and its affiliates operating in mainland China, Hong Kong and Macau are collectively referred to as "KPMG China". KPMG China is based in 23 offices across 21 cities with around 12,000 partners and staff in Beijing, Changsha, Chengdu, Chongqing, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Nanjing, Qingdao, Shanghai, Shenyang, Shenzhen, Tianjin, Wuhan, Xiamen, Xi'an, Zheng Zhou, Hong Kong SAR and Macau SAR. Working collaboratively across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located.
KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 153 countries and territories and have 207,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such. In 1992, KPMG became the first international accounting network to be granted a joint venture licence in mainland China. KPMG was also the first among the Big Four in mainland China to convert from a joint venture to a special general partnership, as of 1 August 2012. Additionally, the Hong Kong firm can trace its origins to 1945. This early commitment to this market, together with an unwavering focus on quality, has been the foundation for accumulated industry experience, and is reflected in KPMG's appointment for multi-disciplinary services (including audit, tax and advisory) by some of China's most prestigious companies.