Toronto, ON (Nov. 29, 2019) \u2013 With digital-savvy millennials now the world\u2019s largest population segment and Gen Z following in their footsteps, Canadian insurance companies must rethink their business and harness big data to drive growth and profitability, finds a new KPMG report titled Insurance frontiers: Here to horizon<\/em>.<\/p>\n \u201cThe insurance industry will look radically different in 10 years from how it does today,\u201d says KPMG\u2019s Chris Cornell, Partner and National Insurance Sector Leader. \u201cForging a new path won\u2019t be easy; insurers must digitize their operations, products, and processes, and use data-driven insights to address this seismic shift in customer dynamics. The one-size-fits-all approach won\u2019t work anymore.\u201d<\/p>\n As many as 86 per cent of chief executives at insurance companies around the world surveyed by KPMG are concerned over how millennials will change their business. Millennials aren\u2019t following historical norms in terms of predicted life paths or milestones. Also, 84 per cent of Canadian millennials don\u2019t trust traditional advertising and 95 per cent say the most credible source of product information is their friends.<\/p>\n Data allows insurance companies to know their customers in ways not previously possible, the report says. Big data can be used to inform assumption setting, better understand risk drivers, anticipated behaviours or events, make quicker underwriting decisions, and support strategies and decisions.<\/p>\n By using data analytics, social media listening, and artificial intelligence, insurance companies can make every customer \u2018a segment of one\u2019 with personalized care and customized insurance products, the report says.<\/p>\n \u201cFrom the moment we\u2019re born to the moment we die, we generate an enormous amount of data,\u201d says Mr. Cornell. \u201cBig data can open up new horizons for insurers. But, they must put into place much stronger data collection and analysis tools. This requires a total rethink of how to collect, store, analyze, and use data, not to mention how to ensure that it\u2019s kept safe and secure.\u201d<\/p>\n For example, by using data for predictive analytics, insurers can create more tailored, micro-insurance products to help companies better understand, manage, and respond to their unique risks, such as reducing fleet insurance premiums.<\/p>\n Released today at KPMG\u2019s 28th annual insurance conference in Toronto, the report delves into five key trends that present risks and opportunities:<\/p>\n The report notes that while insurtechs have ratcheted up the pace of change, many are focused on enhancing or improving a segment of the insurance value chain rather than trying to disrupt the entire industry.<\/p>\n \u201cStrategic alliances present a massive opportunity for Canadian insurers,\u201d says Mr. Cornell.<\/p>\n Insurance companies would benefit from stepping back and thinking about what the insurer of the future looks like without considering their current organizational structures, he says. \u201cBy envisioning what is possible, insurers can look at how third parties and strategic alliances could help them achieve that vision,\u201d he adds.<\/p>\n When it comes to digital change, an astounding 87 per cent of insurance CEOs said they are directly involved in devising and leading technological change within their firm, finds the KPMG\u2019s 2019 Global CEO Outlook<\/a>. However, three-quarters (76 per cent) of insurance CEOs also admit they ignored insights from data analysis and computer-driven models because the findings were contrary to their own intuition and experience.<\/p>\n KPMG surveyed 1,300 CEOs in 11 countries and key industries, including 132 CEOs from insurance companies in the U.S., Europe, and Asia with revenues from US$500 million to over US$10 billion.<\/p>\n The report also urges insurance companies to act soon in order to ensure they\u2019re ready in time for IFRS 17. Already deferred by one year, companies must comply by Jan. 1, 2022.<\/p>\n \u201cInsurers need to build in enough time to test, analyze and compare results and make any necessary changes,\u201d says KPMG\u2019s Stephen Smith, Audit Partner in Financial Services. \u201cOne of the biggest issues is that it\u2019s not scalable, making the transition complicated for larger companies with large, complex books of business. Small insurers, meanwhile, are finding the regulatory burden quite challenging to address given their more limited internal resources and operational flexibility.\u201d<\/p>\n Read KPMG\u2019s new report at home.kpmg\/ca\/insurancefrontiers<\/a>.<\/p>\n KPMG LLP is the independent U.S. member firm of KPMG International Cooperative (\u201cKPMG International\u201d). KPMG International\u2019s independent member firms have 207,000 professionals in 153 countries and territories. Learn more at www.kpmg.com\/us<\/a>.<\/p>\n KPMG is one of the world\u2019s leading professional services firms, providing innovative business solutions and audit, tax, and advisory services to many of the world\u2019s largest and most prestigious organizations.<\/p>\n KPMG is widely recognized for being a great place to work and build a career. Our people share a sense of purpose in the work we do, and a strong commitment to community service, inclusion and diversity, and eradicating childhood illiteracy.<\/p>\n The independent member firms of the KPMG network are affiliated with KPMG International Cooperative, a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such. For more information, visit kpmg.ca<\/a>.<\/p>\n Source: KPMG LLP<\/em><\/p>\n Tags: Big Data<\/a>, InsurTech<\/a>, KPMG<\/a>, Millennials<\/a>, outlook \/ predictions<\/a>, report<\/a>, social media<\/a>Read the original article at Insurance-Canada.ca <\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Amid regulatory changes and InsurTech competition, Canadian insurers find that a one-size-fits all approach in the millennial era won\u2019t work anymore: KPMG report Toronto, ON (Nov. 29, 2019) \u2013 With digital-savvy millennials now the...<\/p>\n","protected":false},"author":578,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/17692"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/578"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=17692"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/17692\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=17692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=17692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=17692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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