Insurance industry leaders are confident about profitability and workforce expansion over the next three years, according to the KPMG CEO Outlook survey, despite concerns over cyber preparedness and the challenges of attracting talent.
Insurance industry leaders have expressed a strong sense of optimism about their firms’ growth prospects over the coming three years, despite encountering hurdles associated with digital transformation, talent acquisition, and sustainability. This forward-looking sentiment emerges from the KPMG CEO Outlook survey, now in its tenth iteration, which polled 120 chief executives from the insurance sector worldwide.
According to the survey findings, an impressive 74% of insurance CEOs anticipate not only boosting their businesses’ profitability but also expanding their workforce in the foreseeable future. Additionally, an overwhelming 93% of these leaders expect to increase their staff numbers, reflecting a broad confidence in continued sectoral growth despite prevailing challenges.
The report highlights that these executives are navigating a complex and demanding environment as they strive to foster growth while simultaneously advancing digital initiatives. Attracting and maintaining talented professionals remains a principal challenge for many of these leaders, who are keen to support their technology-driven business transformations.
A concerning trend identified in the survey is a decline in the confidence of insurance CEOs regarding cyber preparedness. Only 54% of the respondents feel ‘well prepared’ for potential cyber attacks, a noticeable drop from 66% recorded last year. Moreover, just 43% believe their current cybersecurity measures can keep up with the rapid developments within the field of artificial intelligence (AI).
In response to these challenges, the survey reports that a significant 81% of the CEOs have earmarked Generative AI as a top investment focus, rating it as an essential component for expanding their workforce.
The importance of Environmental, Social, and Governance (ESG) issues continues to resonate strongly within the industry, with 63% of the CEOs remaining confident in their ability to meet net-zero emissions targets by the end of this year. This highlights an ongoing commitment to sustainable practices within the insurance sector.
Frank Pfaffenzeller, Head of Global Insurance at KPMG International, observed that insurance CEOs are heavily focused on expediting their digital transformation while also delivering on ESG commitments and enhancing productivity. Pfaffenzeller remarked, “To drive each of these forward, they recognise the need to infuse the organisation with new talent and to embrace new technologies — Gen AI in particular — if they hope to achieve their growth objectives. Those organisations that move further and faster toward a sustainable and digitally enabled future could gain a significant market advantage.”
As the insurance industry grapples with these multifaceted challenges, the insights from the KPMG CEO Outlook indicate a dynamic period ahead, characterised by strategic investments in technology and a resolute pursuit of sustainable development goals.
Source: Noah Wire Services
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