As disruption mounts, (re)insurers are facing huge strategic challenges in maintaining competitiveness, driving change and delivering growth.
With margins squeezed, growth hard won and disruption mounting, (re)insurers are under pressure to bring down expenses further and faster than ever before – marginal savings aren’t enough to compete. Yet they also need to invest in the technology and innovation needed to meet fast rising customer expectations.
Can they do both? We believe they can by ensuring they’re fit for growth.
Late last year, PwC polled 25 insurers for its Fit for Growth (FFG) insurance survey to help gain a better understanding of the issues they face regarding reducing expenses and investing for growth.
Drawing on the survey findings, as well as insights from PwC’s 20th Annual CEO Survey , we outline in this paper why moving the business forward requires a rethink of strategy, costs and, most important of all, how they align. The focus of fit for growth is to optimise, rather than just cut, expenses to ensure your business can sustain competitive relevance and maximise its potential. This means investing in good costs (capabilities that differentiate your business, move it closer to customers, and enable it to develop new value propositions) and eliminating bad costs (non-essential areas of spending).