Johannesburg, South Africa – October 11, 2019 / PwC /

PwC South Africa announces that it has recently published on its website an insightful report which covers trends in the global insurance market and the implications for African insurers. During a recent visit to South Africa, PwC’s global insurance lead, Stephen O’Hearn, shared his views on developments in the international insurance industry and also discussed the megatrends that will likely shape future insurers both around the world and in South Africa. The report details Mr. O’Hearn’s observations and conclusions about the global insurance scene.

Over the last five years, the insurance industry has been among the most disrupted sectors in the global economy, and insurers are left with a sense of apprehension. The speed of technological change, evolving customer expectations, continued regulatory change, and fear of new market entrants have all contributed to this disruption.

Mr. O’Hearn begins the report by identifying megatrends that are prevalent in the current insurance market. The first megatrend is the use of digital connectivity to create a dynamic and unique customer experience.  O’Hearn writes, “Appreciating customers and fulfilling their needs, together with their enhanced digital connectivity, is the first trend which is easily identifiable. This is arguably the number one megatrend impacting the global insurance industry today – that insurers recognise they can compete on the basis of a differentiated customer experience for the first time.”

A second megatrend introduced by the report is the increased reliance on data and analytics. The marriage of big data and behavioral science offers a significant opportunity that the industry must capitalize on to move forward.

Mr. O’Hearn continues the report by answering the following two questions: “Who are the disruptors in the insurance market?” and “What keeps global insurance executives up at night?” The author points out, “A few years ago, it was all about the traditional labour arbitrage opportunities such as outsourcing and shared services. However, over the last couple of years, the focus has moved to the automation agenda, including robotics and artificial intelligence.”

The report then shifts to sustainability and governance. With the social consciousness of the insurance industry at an all-time high, the industry is becoming increasingly involved in economic development and environmental sustainability.

Mr. O’Hearn concludes the report by considering how African insurers can transform quickly to be at the forefront of advances in the industry. He ends by saying, “The goal is to always remain customer-centric and offer simple products that solve customers’ specific problems. And you always want to make sure that you are data-enabled and have efficient systems. And lastly, you must never compromise on your duty to be socially sensitive and environmentally aware at all times.”

PwC provides industry-focused assurance, advisory, and tax and legal services to public, private, and government clients in all markets. The mission is to build trust in society and solve important problems. PwC comprises a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory, and tax services.

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For more information about the global insurance industry and African insurers, read the PDF publication provided by PwC on its website at www.pwc.co.za/en/publications/trends-in-global-market-and-implications-for-african-insurers.html.