It will take committed focus and diligence on operational excellence and innovation for insurers to achieve their strategic growth goals for 2012 in the face of a perpetually tough global economic climate.
Deloitte LLP's Insurance group recently released 2012 Global Insurance Outlook: Generating growth in a challenging economy takes operational excellence and innovation. The introspective report places the impetus for strategic growth on aspects of the business that companies can manage in the face of a volatile and capricious global economy that cares not for the goals of any specific industry.
Sam Friedman, Deloitte's insurance research leader said, "While achieving growth, operational excellence and innovation in such a difficult economic and competitive environment might be easier said than done, opportunities are available for insurers that can seize the moment. There are many options insurers might consider to grow even in the toughest of economies if they can overcome the obstacles they face."
Trudging through a low-interest rate environment with near record unemployment establishes certain boundaries for growth but insurers can exercise some control over their own future by preparing for regulatory changes that will potentially arise when the Federal Insurance Office reports to Congress on January 31 as well as bracing for the effects of Solvency regulatory burdens and for larger institutions, the possibility of being designated, either nationally or globally, as a Systemically Important Financial Institution.
