As 2024 approaches the end, it is a good time to look back at what the insurance industry has achieved, what surprised us, and how the long-term trends have progressed.
Industry results show that 2024 was a strong year. Supported by rising interest rates and continuous (but decline), the airline saw Global premiums increase by 4.6% In 2024, it surpassed the 1.6% average for the past five years. Growth was driven by life insurance, with 5% in 2024 for 10 years at 5%. Non-life growth rate was 4.3%, but due to the impact of the hard market, this has increased from the 3.1% CAGR over the past five years. In 2024, life and non-life premiums accounted for 43% and 57% of total premiums. A stable economic growth and a resilient labor market continued to support the industry.
We observed qualitatively fundamentally of these financial and operating results:
- AI has driven material economic impacts.
As reported by C-Suite clients surveyed globally by Accenture, 87% of carriers (91% P&C;82% L&A) achieved significant economic benefits from using GEN AI. The industry has monetized robust production solutions to enhance the book segment’s enhanced underwriting and claims settlement. However, in a world of ever-growing expectations, demand is to affect “large scale” (i.e., moving from impactful individual use cases to shock the entire functional or value chain domain).
- Insurers used alternative talent strategies to meet the increased demand for core functions.
The underwriter, which has long struggled with an aging workforce and outdated processes, received some relief in 2024 with AI and GEN AI, with senior underwriters expertise in higher value areas such as business development and negotiation. I was able to use. The main example is QBE. It scales industry-leading AI-powered underwriting solutions replicated across multiple business lines. With AI, QBE processes 100% submissions received from brokers (i.e. ingest and extracts) and promotes bind rates from higher estimates with underwriters focusing on top submissions can.
Insurers also implemented strategies to address increased regulatory and capital requirements without increasing staffing by utilizing talent pools outside the organization and at low cost locations. For example, many insurers and reinsurers have sourced high-end actuarials, loss/cat modeling and capital allocation resources from one India. Growth of the actuarial talent pool.
- Optimizing operating models and segment growth has been a recurring theme.
Cost-cutting efforts in recent years have included many heads of departments and business units seeking greater autonomy and cost management. In 2024, we were able to thin out our business lines and local insurance companies, highlighting optimization. Strategic Reorganization Of their operational models, the focus is on greater leadership. Customers and Product Segments.
- Changes in the risk environment have encouraged cross-sector strategies and capital reallocation.
Recognizing the potential for growth in the health sector, insurers are building health businesses and exploring new health risk opportunities. For example, Aviva Insurance Ireland is supporting it Level of health, An insurance business that can reduce the costs of various plans to customers. Meanwhile, the FWD Group is working on it New health risks among gamers The Philippines offers insurance solutions for game-related risks such as vision problems, insomnia and migraines. Care Navigation, Remote Mental Health and Telehealth Services also increased, bringing the total digital health market to $172 billion, up 16%.
He retired from center stage in 2024. Concerns about longevity risk and preparation for retirement increased the need for attention and change. Pensions set sales records for the fourth year in a row as investors took advantage of higher interest rates and questioned whether defined contributions and public programs could provide adequate retirement income. In China, eligible workers in the public system have been permitted for basic pension insurance Voluntarily open a private pension accountreduces some of the overall stress from rapidly aging populations. And because more millennials benefit from the transfer of great wealth and lack interest in traditional career paths, Economic independence, retire early (fire) Movement.
- Preventive Mindset provides reduced service revenue and loss.
More insurance companies and their customers are now looking to prevent injuries and illnesses when it comes to risk mitigation as a table stakes. In the US, 90% of new vehicles offer Standard automatic braking. In 2024, the Global Advanced Driver Assistance Systems market rose 17% (Statista). Finally, genetic Cancer screening and MRI scans are similar to those offered at discounts to John Hancock customers. Partnership with Prenuvoearly detection and better mitigation of health, disability and death risk.
Looking forward to 2025
When we move on holidays, there is a reason for optimism. The insurance industry continues to operate from its position of strength.
