In an evolving economic climate with increasing interest rates, rising inflationary pressures creating increased expenditures and claims costs, insurers face many of the same financial challenges as the customers they seek to protect. Insurance competition is mounting as technology driven competitors enter the market and more companies are choosing to retain more of their own risk. Climate events and cybercrime although not new to the industry are increasingly transforming the risk landscape, and regulatory updates, such as IFRS 17, are adding complexity. Insurers that embraced digital innovation during the pandemic are seeing operational efficiencies and actuarial improvements but now face challenges on where and how to invest to maximize their returns on these items. At the same time, new compliance and reporting demands are steepening the learning curve at a time when talent is hard to find.
As always, insurers want to balance product diversity and affordability with business profitability and growth. That’s a delicate operation to perform when customer preferences are evolving and risk calculations are intensifying. To stay competitive over the long term, insurance providers need strategies that help them adapt, gain operational agility, and capitalize on strategic opportunities. Given increasing climate risks and changing expectations around transparency, they need to ensure their business models and strategies are sustainable and accountable from environmental, social, and governance (ESG) perspectives.
The insurance team at KPMG in Canada serves the comprehensive financial, compliance, and management needs of life and health insurers, property and casualty insurers and reinsurers across Canada and internationally. Our actuarial practice helps insurance organizations balance business goals and risk exposure, while our qualified professionals assist with the broadest range of financial management, operational understanding and regulatory concerns. With global reach and an in-depth knowledge of the insurance industry, our strength is in helping insurers improve operational performance as they implement strategies to gain advantage and foster growth.
