Key trends of 2024
In a survey conducted by international consulting company WTW at the European Insurance Leaders Forum in Brussels, insurers identified key trends that will shape the insurance landscape in 2024.
Respondents cited high inflation and interest rates as the most important obstacles to securing future income growth in 2024, with 25% citing this as a major challenge, the WTW survey found.
Attracting and retaining talent came in second, with 24% of insurance executives identifying it as a critical factor affecting the growth of their organizations.
The survey also highlighted the growing impact of digital transformation, with 20% of respondents citing it as a key trend affecting the industry’s ability to deliver future revenue growth.
Despite the turbulent geopolitical situation, only 15% of insurers saw it as a significant threat to revenue growth in 2024. Regulation, although always considered, ranks lower on the list of near-term risks, with only 13% identifying it as a top obstacle.
When asked about their technology priorities for 2024, insurance executives outlined the following key areas: improving data collection and management ranked first, with 19% of insurers recognizing its importance to future operations, keeping a close eye on improving the customer experience, with 15% of respondents emphasizing its importance, and 11% of insurers identified the digital transformation of underwriting and pricing as a priority for the coming year.
“Insurers expect challenging and volatile macroeconomic conditions to have a significant impact on growth and profitability in 2024,” WTW said. “Changes in technology, talent, and customer expectations, along with the search for sustainable growth areas, will also continue to drive organizational efficiencies and accelerate changes in business models, products, and culture beyond just improving profitability.”