Four key challenges are facing the Greek insurance industry this year, a KPMG survey on the course of private
insurance enterprises in the country showed.
Philippos Kassos, General Director of Insurance Companies Audit Department of KPMG, commenting on the results said that technology, the change of business model, risk management and supervision as well as customers and distribution channels are key challenges for the sector.
The survey said that: “Insurers seek to switch to technology platforms that enable the development and cost reduction. The main objective is a strong data architecture that supports data analysis functions (data analytics) thus enhancing companies to improve product development, sales and customer service. Regarding the business model of the insurance business, it is clear that the traditional form was disrupted by new players in the market. The new, innovative approach is changing customer preferences and challenges the macroeconomic environment. The risk management and supervision will be crucial, as insurers, because of the limitations that exist, can not implement business ideas in real time. Finally, changing customer demands for interaction on transactions, create a new generation of insurers which seeks to offer exceptional customer experience using new, innovative approaches.”
Some of the major findings of the KPMG survey are the following:
– A significant and continuous drop in premium production and especially in the car insurance sector.
– The profitability of the business continued to be very satisfactory with a profit before taxes on average at 17 million euros.
– Traffic accidents continue falling for another year, however at a slower pace, keeping the accident frequency index low.
– The loss ratio in the car insurance sector shows signs of stabilization at historically low levels.
– The new solvency framework that directly links taking new risks with the efficiency and maintaining high capital adequacy, is leading companies to stable and safe paths on policies for new production, avoid guarantees, and complex products usually bring higher capital requirements.