Mary-Louise Hoffman
A KPMG International report says insurers can identify new investment opportunities if they develop innovation strategies and engage in public-private alliances.
KPMG said Friday it believes the insurance sector has the potential to help address climate change, disaster and infrastructure management and economic development issues by offering long-term debt financing products.
“Insurers will either need to innovate or raise premiums and add more exclusions, which has implications for economic growth,” said Mary Trussell, KPMG’s global insurance innovation and high growth markets lead.
“PPPs can bridge the protection gap as well as direct investment to areas that support economic and social development,” Trussell added.
Forty-five percent of more than 280 insurance industry executives who participated in a recent KPMG survey said their companies do not have a formal innovation strategy.
Respondents cited regulation, business challenges and lack of core skills as among the factors that prevent them from innovating.
