Competitive pricing and adequate profitability are the top concerns of global insurance leaders, according to a survey on key issues released by the International Insurance Society (IIS).
Over 400 insurance leaders from all sectors of the global industry representing over 50 countries are meeting at the IIS 48th annual seminar in Rio de Janeiro this week.
The group was asked to identify their overall top concerns. Leading the list was competitive pricing and adequate profitability (33%). Managing risk (19%) and new market opportunities (16%) suggest a mixture of a positive outlook for growing the business with the challenge that effective risk management is key to profitable growth.
The survey was sponsored by ACORD, the global data standards organization for the insurance industry.
For the non-life industry, respondents identified risk management as the top issue (24% of respondents), with inadequate premium rates coming second (22%), reflecting growing concerns about emerging catastrophe and other risks and competitive pressures that limit the ability to charge adequate premium rates.
For the life industry, the top issues were investment opportunities to meet benefit requirements (28%) as the low interest environment limits the ability to support current benefit levels and certain product guarantees. Mortality and morbidity trends (21%) and regulatory/rating agency requirements (20%) also registered high responses.
The IIS, founded in 1965, is the world’s largest industry organization, with almost 900 members representing global insurance leaders, international regulatory authorities and worldwide insurance scholars from over 90 countries.
The survey included over 150 respondents, 30% from Latin America, 21% from Asia Pacific, 20% from Europe, 13% from North America, 10% from Africa and 5% from the Middle East.