Inflation insurance industry's biggest challenge in 2023
Source: Middle East Insurance Review | Feb 2023
Over a third of insurance industry said inflation will be their biggest challenge in 2023. A new poll conducted by GlobalData revealed that inflation ranks several notches ahead of challenges like climate change, digitalisation, regulation, COVID-19 and geopolitics.
The poll found that the record-high inflation and the consequent cost-of-living crisis will be the greatest challenge faced by the insurance industry. It said the consumers are more squeezed than ever financially and insurers may need to be flexible and innovative in order to retain customers.
Inflation was ticked as the top challenge for 2023 by 36.4% insurers while digital transformation at 17.9% ranked second with climate change at 9.9% and regulatory changes at 7.9% and cyber crimes at 6.6% followed.
GlobalData’s survey found that across personal lines products, consumers are conducting more research at renewal but not necessarily switching more.
This means insurers that offer some point of differentiation are likely to pick up more new business, as consumers are increasingly looking for any added value they can find. This could include increased flexibility such as the ability to switch cover on and off, only paying for exactly what they use (pay-per-mile), or even payment breaks (as was seen during the COVID-19 pandemic). M