From economic developments to ESG and working from home: we asked 120 Chief Executive Officers of insurers from eleven countries for their views on the most pressing issues of the day as part of the comprehensive KPMG CEO Outlook 2024 (LINK). The industry-specific KPMG Insurance CEO Outlook 2024 provides a comprehensive picture of the situation in a VUCA world.
KPMG Insurance CEO Outlook 2024: Contents and key findings at a glance
In the current phase of economic uncertainty, the view of current challenges and framework conditions in the boardrooms of the insurance industry remains critical. CEOs are faced with complex tasks: Achieving growth targets, driving forward the digital transformation, attracting and retaining employees and pursuing sustainability and ESG goals. This requires strategic skill and consistent action. Decisions made now will make a significant contribution to the long-term organisation and success of the insurer's business.
Despite the complex economic climate, insurance company CEOs are confident that they will be able to grow their business over the next three years - both in terms of revenue and headcount.
In the face of increasing competition, companies are resorting to various measures to realise the targeted growth. CEOs are increasingly focussing on accelerating digital transformation, implementing their ESG strategies and increasing productivity. At the same time, they recognise the need to attract new employees and use innovative technologies - especially generative artificial intelligence (AI).
Stefan Heyers
Partner, Financial Services, Head of Insurance
KPMG AG Wirtschaftsprüfungsgesellschaft
Remarkable figures at a glance:
of insurance company CEOs are confident about growth prospects - despite economic challenges. In the next three years, 93 per cent expect to increase the number of employees.
of insurance company CEOs state that they use AI to accelerate data analysis. This percentage is twice as high for insurers as the overall industry average in the CEO Outlook. Respondents see generative AI as one of the most important investment priorities for their organisation.
of insurance company CEOs are confident of achieving net zero targets by 2030. ESG continues to be a relevant topic for many insurance companies.
of CEOs say that their company is ‘well prepared’ for a cyberattack. The percentage has fallen significantly: In 2023, it was still 66 per cent. Only 43 per cent of respondents also believe that their cyber strategy can keep pace with the rapid advances made by AI.
Technology is critical to growth in the insurance industry. 81 per cent of CEOs surveyed see generative AI as a high investment priority to accelerate data analytics and increase operational efficiency. However, to realise the potential of AI, insurers need to develop governance that addresses technical and ethical risks.
Background and methodology
The KPMG Insurance CEO Outlook is part of the tenth edition of the KPMG CEO Outlook 2024 and was compiled from the survey results of 120 CEOs of insurance companies. The survey took place between 25 July and 29 August 2024 and offers an exclusive insight into the mindsets, strategies and action plans of CEOs.
All respondents run companies with an annual turnover of more than 500 million US dollars, while a third run companies with an annual turnover of more than ten billion US dollars. CEOs from eleven key markets - Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, the UK and the US - and eleven key industries, including insurance, took part in the survey.
In the insurance sector, the two largest shares (31 per cent) were accounted for by car, home, property and casualty insurance and life insurers (30 per cent). The most strongly represented countries - based on company headquarters - are the USA and the United Kingdom, followed by China, India and Canada.