Several drivers of change, including new and rigorous expectations from regulators and standards , increasing demands for more relevant and useful information, improvements in analytics, and the need for operational transformation, are compelling insurance companies to re-evaluate and modernize all aspects of their business model and operations.
We recognize that many insurers are starting their modernization journey. For the most part, they are starting with individual projects in reaction to immediate regulatory and business needs. However, a piecemeal approach is likely to result in projects that address only immediate, short-term needs.
PwC’s approach to insurance modernization focuses on developing a forward-looking, future-proof view and holistically addressing the combination of forces that are impacting the existing insurance operational model. We do not believe that insurers will benefit by addressing them one by one in a tactical and reactive manner. The impacts of each influence are pervasive throughout actuarial, finance, risk, marketing and distribution, IT, and other functional areas. This means that key functional areas need to work together to create an insurance operating model that is nimble, agile, future-proof and can help companies manage and adapt to change as part of standard business practices.