2024 global insurance outlook

2024 global 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 net” 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.

This pivot will likely occur alongside a shift to a more customer-centric business model in the industry. These changes will require both more advanced technology adoption and an evolution in company culture away from siloed interactions and toward increased accessibility of customer data.

Fundamentally, the insurance industry is becoming more of an ambassador for sustainability, influencing purpose-driven strategies and decisions that create a better workplace, marketplace, and society. Check out the 2024 global insurance outlook to learn more. 

Key messages

• 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.
• This shift to a more customer-centric business model will likely require advanced technology adoption and 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.
• Merger and acquisition (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 into 2024. Insurance technology companies (InsurTechs) remain front and center 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.