The survey polled more than 40 CEO Members of The Geneva Association on the performance prospects and likely growth areas for the insurance industry over the next 12 months and the challenges they face in implementing their strategies.
Insurers’ focus on emerging markets was evidenced by some 70 per cent of CEOs seeing Asia as a very important area for their growth and 46 per cent considering South America as highly important for their growth over the next 12-24 months.
However, the key themes that emerged from the survey were concerns about the macro-economic environment and the upcoming decisions on insurance regulation. When asked about the challenges to their ability to implement their strategy, 75 per cent of CEOs cited the eurozone crisis as a top issue (4/4), with 73 per cent also citing over-regulation and inappropriate regulation as a top concern for their strategies.
Chairman of The Geneva Association and Chairman of the Board of Management, Munich Re, Dr Nikolaus von Bomhard, said: “The insurance industry plays a vital stabilising role in society and in the world’s economies, both as a significant participant in financial markets and as a shock absorber for individuals and companies that suffer an insured loss. The results of this survey reveal that leaders of some of the world’s largest insurers are concerned that inappropriate systemic risk regulation will needlessly affect our ability to play that role.”
John H Fitzpatrick, Secretary General of The Geneva Association, said: “The insurance industry supports the ongoing regulatory initiatives undertaken by the G20. We believe that the development and promotion of effective supervisory and regulatory policies to reduce systemic risk and address information gaps is to everyone’s benefit. However, banking and insurance have very different business models and very separate roles in society and the world economy, thus they must be regulated differently. This survey shows that the insurance industry remains very concerned that regulators will opt for a politically-motivated regulatory response rather than focusing on a methodology appropriate for insurance.”
The results also highlight the significant role that insurers can play in tackling the challenges of global ageing.
Press release
© Geneva Association
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