Today’s insurers face a wide range of complex challenges, from navigating financial market uncertainty, to managing low margins in increasingly digital and competitive markets, while tackling overwhelming regulatory requirements. Tax Morality and Transparency, borne by CRS and FATCA, with increased management attention to KYC and AML compliance programs, also rate high on the agenda.

While these factors may add new risks, they also present opportunities for insurers, reinsurers, and distributors to rethink strategy, redesign financial and capital models, revamp sales, service and support processes with technology, and explore new growth in emerging markets or through product innovation.

A regulatory maze to overcome

The sector is facing intensified regulator scrutiny, linked with the necessary enhanced compliance and capital requirements under Solvency II and IFRS regimes.

At the same time, the regulations keep weighing on companies' agendas and project budgets, as the sector contemplates IDD anticipated impacts, and the life sector in particular tries to overcome the commercial and operational processes disruption linked with the PRIIPs pre-contractual and intensively data-consuming obligations.

A transformation of the operational models

The digital (r-)evolution has been developing for several years now. But the insurance sector in Luxembourg has only recently started to perceive how this will change the game at the consumer level. Starting with non-life companies, but encompassing all businesses, there is an obvious need to reinvent distribution practices and consumer touchpoints in order to keep up with digitally savvy competition.

Companies also want to redefine the added value at each step of their processes, in order to maximize the customer (and intermediary) experience, while lowering operational costs where possible.

In this whole transformation journey, modernizing technology and processes in order to derive value from the vast volume of data becomes key.

Our range of services

KPMG Luxembourg’s multi-disciplinary insurance team, led by experienced professionals with a deep understanding of the sector and a dedication to helping the industry go through its current challenges, emphasize collaboration and knowledge transfer to help ensure your organization is empowered for the future.

Among other topics, our range of services covers: