PwC has today published it’s latest Insurance Ireland-PwC CEO Pulse Survey which highlights key industry trends showing emerging industry confidence, a focus on innovation and insurance technology, but some concern over the challenges posed in realising Brexit-related insurance opportunities.
The survey was conducted during July/August 2017 amongst Ireland’s leading insurance and reinsurance CEOs including the members of Insurance Ireland following their merger with DIMA.
Looking at the year ahead, 67% of Insurance CEOs surveyed said that they are confident of business growth with a further 23% very confident. This is manifested in the respondents’ plans for workforce expansion with 63% planning on expanding their workforce including 30% of CEOs planning workforce expansion of between 5% and 20%.
The General Data Protection Regulation, going into effect in May 2018, is the top business disruptor according to nearly three out of four respondents (70%). Other key business disruptors are changes in distribution channels (67%) and changes in core and emerging technologies including InsurTech. These trends are also seen as opportunities.
The report finds that the top challenges for the Irish insurance industry right now are over-regulation (70%), cyber threats (66%) and skills availability (53%), although globally these challenges are of much greater concern. Over a quarter (27%) of Irish respondents admitted to having experienced a cyber-attack in the last few years. Nearly three-quarters (73%) reported that the Irish regulatory regime is more demanding when compared to other EU territories. The most competitive international regulatory regimes relative to Ireland were noted as Luxembourg, Bermuda and Frankfurt.
Although nearly two-thirds (63%) see it as a business disruptor, some recognise Brexit is an opportunity with 26% of respondents whose companies have UK operations saying their organisation is considering relocating some or all of their operations to Ireland. The respondents did note challenges to realising Brexit-related opportunities in the form of regulation, infrastructure/accommodation, high personal tax and the availability of talent.
According to the survey, the top Government priorities should be maintaining the competitiveness of our corporate tax regime (60%); ensuring Ireland remains competitive including wages and rates (53%) and reducing our personal tax regime (37%).
Commenting on the report, Insurance Partner at PwC, Ronan Mulligan said, "One of the key aims for insurers is to be fit for growth and the survey highlights that improving efficiency and competitiveness is top of mind for Irish insurance leaders. The survey highlights that data analytics, artificial intelligence and automation are key levers for insurance and reinsurance firms to become even more competitive."
He added, "And, as a small open economy, remaining competitive while increasing market share will be critical for Ireland in the light of Brexit and as we continue to grow our international insurance centre of excellence."
Source: www.businessworld.ie
