Canadian Underwriter
News

Insurance company CEOs optimistic about growth over the next three years: PwC survey


February 22, 2011   by Canadian Underwriter


Print this page Share

Insurance company CEOs around the world are more bullish about their companies’ growth potential over the next three years than their counterparts in other industries, according to the PwC 14th Annual Global CEO survey.

The survey was conducted with 1,201 business leaders in 69 countries around the globe in the last quarter of 2010, including 57 insurance company CEOs.

More than half (56%) of the insurance company CEOs surveyed said they were very confident about their company’s prospects for revenue growth over the next three years, and “virtually all the rest” said they were reasonably confident.

“That makes them more optimistic than CEOs in almost every other sector” of the survey, PwC said.

But exactly how they intended to grow would prove to be a challenge for many, the report suggests. It noted the surplus capital held by many wholesale insurers is depressing rates across most lines of business.

“While growth in many mature markets may be slowing and returns on many of the more commoditised lines may continue to be low, there are ways for wholesale insurers to generate more favourable and sustainable shareholder value,” the PwC report states.

“This includes developing the scale and efficiency to provide volume products efficiently and cost-effectively.

“They could also get closer to the client, rather than waiting for the broker to deliver the business. This would enable them to build up a better understanding of the client’s specific risk management demands and develop carefully tailored solutions to meet them.”

Over the long term, 56% of insurance CEOs surveyed saw opportunity knocking in emerging markets, rather than in their home markets. China topped the list of countries targeted for growth, followed by the United States, Brazil and India.


Print this page Share

Have your say:

Your email address will not be published. Required fields are marked *

*