Carriers Can Avoid Some 2017 Uncertainty by Combating Cyber Risk, Embracing Innovation

December 8, 2016

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Property/casualty face uncertainty about how they’ll fare in 2017 for a variety of reasons, but there are four ways the sector can boost its odds for success, a new EY report argues.

Insurers can drive profitable growth if they focus on customer-driven innovation, embrace technology as a driver for top- and bottom-line performance, place cyber risk high on their agendas, and rethink plans they have in place to attract, develop and keep talent, the report concludes.

Moving ahead with these four recommendations is important, the EY report notes, in part because of the timing. With the election of Donald Trump as U.S. president, economic prognosticators are struggling to make their 2017 predictions for the property/casualty insurance industry. Uncertainty remains about how the sector will fare in the year ahead because of unknowns ranging from possible economic and regulatory changes, to advances of technology and the growth of InsurTech, according to the report.

On top of that, the incoming Trump administration “introduces the likelihood of further economic and regulatory change,” the EY report asserts. “With the industry in flux, this is the right time for CEO?s to think through their future business strategies.”

Here are EY’s 2017 recommendations in detail:

The full EY report is called “2017 U.S. property-casualty insurance outlook.”

Source: EY