|PR Newswire Association LLC|
The report also covers other key areas of focus, including international regulatory developments in risk and capital management.
Technology: Innovation is happening in all aspects of information, from capturing and interpreting to integrating and sharing. Innovation is enabling insurers to make better and smarter use of greater amounts of data, called "big data." While personal lines carriers are further along in their use of technology, today all insurance sectors have an opportunity to use big data and smart analytics, many for increasingly large and complex risks.
In these instances, big data will be used not only to automate, but also to enhance underwriting processes, reduce cycle time, facilitate better pricing, improve loss control and better inform decision making related to customer acquisition and retention.
"One of the largest challenges insurers will face in 2012 and beyond is capturing and interpreting data from a growing number of structured and unstructured sources, including but not limited to social media, policy-holder behavior and telematics," says
Emerging Markets: Insurers are increasing their focus on emerging markets as an important part of their growth strategies. Growing populations and expanding middle classes have increased the demand for insurance in these markets. Insurers that are already in emerging markets are examining their footprints to ensure they are getting optimum growth and value from their investment.
Regulatory Issues: Insurers are making internal investments to meet regulatory demands and better manage risk. Many insurers expect to change the way they manage risk over the next year, as well as modify their capital structures.
More specifically, in preparation for the US ORSA requirement, insurers are developing a more formal assessment of their ERM framework and risk management practices. Those with robust frameworks may find complying with the requirements less burdensome than those with less developed frameworks and infrastructures. As standards across the industry develop, even more advanced organizations may need to make further investments to maintain a market-leading position, as well as fulfill increasing regulatory scrutiny of risk management.
About the PwC Network
PwC firms help organizations and individuals create the value they're looking for. We're a network of firms in 158 countries with close to 169,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com.