Slow global economic growth poses the largest threat to the viability of the insurance industry over the next five years, according to Ernst & Young (EY).
EY’s Business Pulse Report, which surveyed 65 companies, revealed that ‘macroeconomic trends’, including weak growth and the struggle of firms to increase revenues, were seen by respondents as the biggest problem facing the industry.
Another threat identified was the uncertainty caused by the new Solvency II regulations, to be introduced in 2016.
The eurozone debt crisis and the ability to retain talent were also worries, alongside operational risks.
Ernst & Young’s global insurance sector leader, Shaun Crawford commented:
‘Adapting to evolving market and regulatory change will be a challenge that requires employing new technologies and building flexibility into all aspects of our business.’
Find out more about the future of insurance.