Europe: Inflation, interest rates volatility biggest challenges for revenue growth in 2024
Source: Middle East Insurance Review | Dec 2023
Insurance industry leaders from across Europe forecast high inflation and interest rates, attracting and retaining talent, and digital transformation will have the greatest impact on their organisations’ ability to secure future revenue growth in 2024, according to a recent survey conducted by WTW.
Inflation and interest rate volatility was ranked by respondents as the most significant barrier to securing future revenue growth in 2024 (25%), closely followed by attracting and retaining talent (24%) and digital transformation (20%).
The ongoing turbulent geopolitical landscape was viewed as a less significant threat with only 15% of insurers reporting this a barrier to revenue growth in 2024. Regulation (13%) also did not feature as prominently as a short-term risk over the next 12 months relative to other global risks.
In 2024, enhancing data collection and management of that data represent the top concern, according to 19% of insurers. This was followed by improving the customer experience (15%) and digital transformation for underwriting and pricing (11%).
WTW European regional leader, insurance consulting and technology Tammy Richardson said, “Insurance companies expect tough and volatile macroeconomic conditions will have a major impact on growth and margins in 2024. Shifts in technology, talent and customer expectations, alongside the search for pockets of sustainable growth, will also continue to drive efficiency improvements in organisations’ operations and accelerate changes to business models, products and culture, not only to fuel profitability but to remain relevant and survive.”
WTW polled 75 insurance industry leaders from over 45 companies last October as part of its inaugural European Insurance Leaders’ Forum in Brussels. M