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Commenting on the insurance industry and its need to change, David Law said: "The ability to innovate and differentiate over the next few years is going to be critical. Some slower moving firms are going to come under threat. However, there are also huge opportunities. In future, insurers can control risks more effectively, and provide protection for policyholders in a way that no previous generation has been able to match."
Commenting on the drivers of change, Law said: "The financial crisis has clearly been an enormous catalyst for what we are seeing now. It has reduced investment returns, dented public trust and changed customers' appetite for risk.
"Technology is the mega trend that could prove most threatening, but also offers the greatest potential for competitive differentiation. Advances in analytics and processing power will allow agile businesses to offer more responsive policies at lower cost and with better risk control.
"The most far-reaching development is the acceleration of trade between the emerging markets of South America, Asia, Africa and the Middle East.
"On the life side, risks include the potential for asset bubbles and mis-selling. On the non-life and reinsurance side, most firms have yet to get to grips with the changing risk and liability profile created by phenomenal economic growth in the region."
Law concluded: "The successful insurer of the future is going to depend on the speed of decision-making and the ability to bring technology and distribution together to give customers what they want, when and how they want it. They must also be able to clearly and convincingly communicate value."
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