The third quarter has seen a marked shift in insurer confidence compared to the two previous quarters
General insurer and broker confidence is rising this quarter, despite the pressures both are facing from the FCA pricing crackdown and the business interruption test case, a joint survey by PwC and the CBI has reported.
Confidence among insurers in the third quarter saw the biggest jump in the financial services sector, the survey found. This contrasted with falling confidence in the previous two quarters.
The report also saw a bounce in profit expectations and confidence among brokers, while they pinpointed regulation and shifting customer preferences as highly disruptive factors, with the Covid pandemic being their most pressing concern over the next year.
PwC UK insurance lead Alex Bertolotti said that ”while efficiency and risk management are clearly critical, transformation strategies must keep pace with changing customer expectations”.
Progress on the ground
“That these shifts have been accelerated by the impact of Covid-19 cannot be understated and firms that make the most of available data hold the key to understanding what customers really want, Bertolotti continued.
“We’re seeing changes in customer preferences and behaviour so it makes sense to see these drivers feature strongly in how insurers plan to respond in the future. What’s crucial is to turn this appetite for change into progress on the ground.”
The report also highlighted that insurers were looking to prioritise diversity and inclusion strategies, as well as drive technology changes to improve customer experience and “maximise efficiency”.