Our offering
Industry expertise and multidisciplinarity are at the core of our model.
Context
The insurance sector is undergoing a profound transformation, driven by emerging risks, technological innovation, regulatory pressures, and economic uncertainty.
Emergence of new risks
Emerging risks, particularly climate-related and cyber threats, are reshaping the insurance landscape. The rising frequency and severity of climate-related claims are driving significant increases in compensation costs. Simultaneously, accelerating digitalization is heightening vulnerability to cyberattacks for businesses and individuals, fuelling sustained demand for cyber insurance solutions.
Technological developments
The digital and technological transformation of the sector is unlocking new capabilities, with artificial intelligence at the forefront. AI is enhancing underwriting precision, improving fraud detection, automating claims management, and delivering greater data reliability, thereby redefining operational efficiency and customer experience.
Heightened regulatory standards
Insurers are navigating an increasingly complex regulatory environment, marked by stringent and evolving requirements. Compliance now encompasses frameworks like Solvency II for capital management, IFRS 17 and IFRS 9 for accounting, and social standards such as IAS, demanding rigorous adaptation across the industry.
Economic uncertainty
The rise in interest rates, following an extended period of historically low levels, coupled with market volatility is driving insurers to diversify their investment strategies, particularly towards alternative assets and ESG-focused solutions.
Meanwhile, high inflation is escalating costs across healthcare, automotive repairs, and construction, intensifying the challenge of accurately pricing insurance products.
Challenges
Integrating new risks into insurers' models
To address the escalating impact of climate change, including the rising frequency of natural disasters, and the increasing threat of cyberattacks, insurers must recalibrate their actuarial models and overall risk management strategies. Effectively integrating climate and cyber risks is critical for proactively anticipating and mitigating these emerging threats, ensuring long-term resilience.
Transformation of the operational model through AI
The progressive adoption of artificial intelligence presents insurers with significant opportunities to automate and streamline processes, driving down operational costs while enhancing data processing speed and accuracy. Additionally, AI serves as a powerful tool in the fight against fraud, enabling insurers to detect anomalous claims and suspicious behaviour, thereby strengthening risk management capabilities.
Adapting models in response to regulatory pressure
The constantly evolving regulatory landscape requires insurers to adapt their models in order to meet both accounting and prudential requirements. Ongoing adjustments to models and reporting frameworks are essential to maintaining transparency and comparability of results. Furthermore, equipping teams with in-depth knowledge of regulatory frameworks is vital for ensuring compliance and maintaining a competitive advantage.
Controlling Costs to Enhance Profitability
Given the emergence of new risks, the rise in claims in certain sectors, and the volatility of financial markets, cost control has become a critical driver for improving insurers' profitability. This involves implementing comprehensive operational efficiency programmes, which may include outsourcing activities, optimizing distribution networks, streamlining internal processes, reducing operational costs, reorganizing key functions, and strategically managing project portfolios.
