2024 insurance outlook:

The increasing frequency and severity of global risks is drawing eyes toward the insurance industry’s capacity and capability to serve as the “financial safety nets” of society. As a result, most insurers are coming to terms with a more proactive, transformative approach that aims to prevent losses rather than react to their occurrence.

Here are some of the key findings from Deloitte’s 2024 insurance industry outlook:

• The escalating frequency and severity of global risks—from climate change to cybercrime—is intensifying focus on the insurance industry’s capacity and readiness to react as society’s financial safety nets.
• Most insurers are realizing that reacting to risks may not be good enough and are undertaking transformation efforts aimed at preventing losses from happening in the first place.
• The shift to a more customer-centric business model will likely require advanced technology adoption and the modification of company culture to help minimize siloed interactions, enhance collaboration among employees, and increase accessibility of customer data, but skill sets may need to be augmented.
• M&A activity has been on a decline since Q2 2022, due mainly to macroeconomic factors. However, as increases in interest rates and inflation ease, pent up activity may drive an upsurge in deals later in 2023 and into 2024. Insurtechs remain front and centre of acquisition activity as carriers increasingly look to these capabilities for point solutions across the value chain to power transformation efforts.
• A fundamental mission underlying much of this change is that the industry’s role is pivoting to that of a sustainability ambassador, influencing and propelling purpose-driven decisions and strategies of clients across industries to create a better workplace, marketplace, and society.