The past decade, and the last few years in particular, have been an exhilarating and challenging time for an industry that is traditionally risk-averse and slow to change.
As we look to 2025 and beyond, insurers must harness the momentum they’ve gained to meet a host of new difficulties. These include macroeconomic and structural headwinds, increased demands regarding climate risk and social purpose, new forms of competition, changes in reporting and accounting standards, and the exponential growth in digital innovation.
Regardless of how insurers capitalise on these trends, they’ll need to reassess the future and reimagine their place in the world.
The global protection gap (the difference between actual and insured losses), which reached US$1.4tn in 2020, is forecast by PwC to widen at an accelerating pace. Our analysis estimates this gap could reach US$1.86tn by 2025, with the Asia-Pacific region accounting for almost half of all uninsured risk (source: Insurance 2025 and Beyond).
Expectations are also mounting for the industry to play a greater role in environmental, social and governance (ESG) issues, as both investors in and underwriters of other corporations.
PwC identifies five trends that will affect the future of insurance:
A widening trust gap in an uncertain world
Rapidly evolving customer needs and preferences
An increasingly digital and AI-driven world
Climate risk and a focus on sustainability
Convergence, collaboration and competition
PwC's global Insurance leadership, led by Jim Bichard, Global Insurance Leader, Partner, PwC UK, is delighted to be at the Reinsurance Rendez-vous in Monte Carlo once again this year and will be hosting the following events on Monday, 12 September at the Hotel Hermitage:
Please contact Marina Mello for further information on any of these events.