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Opportunities and Risks
2© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
With you today…
Stephen SmithPartner
+1 416 777 3194 [email protected]
Amit ChalamSenior Manager
+1 647 777 5376 [email protected]
3© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Survey overview
Understand IMMEDIATE and MEDIUM TERM OPPORTUNITIES and RISKS, for individual
COMPANIES and the INDUSTRY.
OBJECTIVE: Different from other surveys, portrays a
CANADIAN PERSPECTIVE on both the OPPORTUNITIES and RISKS
insurers face in the current environment.
4© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Respondent Profile
40%are P&C insurance providers
39%are Life insurance providers
4%are Intermediaries
17%Other
Sector
97% of P&C respondents indicate they are primary insurers (3 percent reinsurers)
82% of Life respondents indicate they are primary insurers (18 percent reinsurers)
31%are executive management
21%are external board members
18%are finance/ accounting
11%are actuarial; 10% risk & compliance; 2% IT; 2% operations; 5% other
Functional Area
5© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
What are the mega-trends?
Customer is still king
Enhancing operational processes and technology is the major opportunity
The general mood is pessimistic
6© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Enhancing operational process through technology
Insurers see the opportunity in enhancing operational processes and technology solutions
This likely supports the shift in modern insurers from a process-centric viewpoint to one that is more technology driven, data-centric and operationally efficient
What was “out of the box” technology last year, may be commonplace soon… – Embedded technology to gather information about specific objects – Connected home technologies– Wearable devices– Robotic process automation to process claims – Drones to monitor crops, take pictures for real estate listings,
and mapping the oil sands
7© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Top Opportunities to Companies
Enhanced operational processes and use of technology
Offering better customer experience
Improved management of risk and use of capital
Data analytics to enhance product design, marketing and pricing
Strengthening customer loyalty and reducing market conduct risk
8© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Top Risks to Companies
Regulatory and compliance burden
Low interest rates and equity market risks
Cyber security risks
Cost and risks of IT investment
Cost reduction pressures increasing operational risks
9© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Outlook this time last year
3%
43%38%
13%3%
0%
17%
67%
15%
1%
Significantlymore optimistic
Somewhat moreoptimistic
About the same Somewhat morepessimistic
Significantlymore pessimistic
Respondent outlook on their organization in 2015 compared to 2014Respondent outlook for the Canadian insurance industry as a whole in 2015 compared to 2014
10© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Outlook compared to last year
2%16%
42%37%
2%2%
22%
55%
20%
1%
Significantlymore optimistic
Somewhat moreoptimistic
About the same Somewhat morepessimistic
Significantlymore pessimistic
Respondent outlook on their organization compared to this time last yearRespondent outlook for the Canadian insurance industry as a whole compared to this time last year
Thank you
© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
