Despite economic headwinds, insurance CEOs are confident that they will be able to grow their business over the next three years - both in terms of earnings and headcount, according to a report released by the global professional services firm, KPMG.
The report, titled “KPMG 2024 Insurance CEO Outlook”, says that competition is growing, and organisations are pulling a number of levers to drive the growth they require.
Dr Frank Pfaffenzeller, global head of insurance at KPMG International, said, “The good news is that many insurance CEOs are making strong progress on a range of key topics. This latest survey highlights that insurance organizations are embedding ESG into their strategies, investing into Gen AI and emerging technologies, upskilling their workforces and enhancing their diversity and inclusion. But there are clear challenges that should be carefully navigated to build a business fit for the future.”
The main findings of the survey are:
Driving growth in an uncertain economy: 74% of insurance CEOs say they are confident in their own company’s growth prospects over the next three years.
Enabling the enterprise with Gen AI and digital transformation: 81% of insurance CEO respondents say that Gen AI is now a top investment priority, despite ongoing economic uncertainty. 0% say implementation of Gen AI will eliminate more jobs than it creates.
Attracting talent and shaping the workforce: 62% of insurance CEOs believe that talent gaps could negatively impact their organization’s growth over the next three years. 93% expect to increase the size of their workforce in the next three years
Embracing ESG to achieve measurable outcomes: 70% of insurance CEOs say they are willing to take a stand on a contentious issue but 54% say that stakeholder expectations change faster than they can adapt.
The "KPMG 2024 Insurance CEO Outlook", part of the 10th edition of the "KPMG 2024 CEO Outlook", is compiled from the views of 120 insurance CEOs. The survey was conducted between 25 July and 29 August 2024. All respondents have annual revenues over $500m and a third of the total number of companies surveyed have more than $10bn in annual revenue. The survey included CEOs from 11 key markets (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, UK and US) and 11 key industry sectors, including insurance. The best-represented countries based on organisational headquarters are the US and the UK, followed by China, India and Canada.