The 2016 KPMG Insurance Survey has shown that the insurance industry has embraced disruptive innovation in order to overcome tough times. Over the last few months, insurers have had to employ technology and embrace innovation to give their clients the best possible products and service and to stay ahead of the competition.
The survey revealed that short-term insurers increased their premiums by 11 percent year-on-year. This is not because the number of those that have been insured has increased but because of rate increases and lumpy corporate premiums. The four largest insurance companies still dominate the market and underwrite more than half the market’s total written premiums. While the four largest insurers have remained the same, the individual rankings of the insurers has changed from previous years.
The long-term insurance industry is prosperous, as the survey has shown that when investment markets increase and bond yields remain unchanged, the industry does well. To maintain the increase in prosperity, those in the insurance industry need to adopt a progressive approach in order to rake into account the coming changes to the regulatory environment.
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