CEOs in the insurance sector are confident about their company's growth prospects over the next three years despite challenges in digital transformation, talent and sustainability, a survey of 120 sector leaders from across the world finds.
The “KPMG CEO Outlook” report, released yesterday, now in its 10th year globally, reveals that 74% of insurance leaders are confident that they will be able to grow their business over the next three years — both in terms of earnings and headcount — with 93% expecting to increase the size of their workforce.
However, CEOs across the sector are dealing with a complex set of pressures and challenges as they look to grow their business while accelerating their digital transformation. Talent remains a key concern as CEOs attempt to attract and retain professionals with the right skills to support technology-enabled business transformation.
Furthermore, just 54% say they are ‘well prepared’ for a cyber attack (down from 66% last year), and only 43% think their cyber strategy can keep up with the rapid advancements enabled by AI. It’s, therefore, no surprise that 81% reported that Gen AI is a top investment priority for their organisation and that the technology will be a key driver in increasing their headcount.
Environmental, Social, and Governance (ESG) also continues to be a key focus for many insurance organisations, with 63% of respondents confident that they will meet their net zero goals by 2023.
Mr Frank Pfaffenzeller, head of Global Insurance, KPMG International, said, “Insurance CEOs are highly focused on accelerating their digital transformation while delivering on their ESG agenda and enhancing productivity. To drive each of these forward, they recognise the need to infuse the organisation with new talent and to embrace new technologies — Gen AI in particular — if they hope to achieve their growth objectives. Those organisations that move further and faster toward a sustainable and digitally enabled future could gain a significant market advantage.”
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