A new insurance story is unfolding in an industry which has a global premium income of 4.5 Trillion USD as CEO’s start to pick up the pace in the face of unprecedented changes. These changes are at a global level and the change actors will impact East Africa as a key emerging market which has ambitious plans to grow premium income, with a young and dynamic customer base and a rapidly expanding middle class.
Five key messages have emerged that require East Africa Insurance CEO’s to consider as they continue to build up the sector:
- Disruption is long term- CEOs need to transform their businesses to meet the changing needs of customers. In fact, 81% see disruption as an opportunity, not a threat.
- Customer are key- global and East African wide regulation is moving from a focus on solvency to market conduct and customer centricity. 73% of CEO’s can confidently articulate their customer value proposition. This is especially critical in East Africa which is moving towards multi-distribution channels.
- Risks are changing- The only certainty is change. New risks which concern CEO’s are managing operational risk, talent and cyber but top of mind is emerging technology. We expect to see more automation as disruptive technology and innovation creates digital labour and solutions like block-chain.
- The Future is everything- As change impacts, CEO’s realise they must make increasing bold decisions to stay in the game. Confidence is also increasing though as 58% believe they are effective at sensing market signals.
- Focus on results- CEO’s must manage tight budgets to optimise and more than ever, they need to be strategic- 59% say the primary objective of any investment is to transform their business and operating models.
To accelerate innovation and to thrive, it is clear CEO’s both globally and in East Africa must change the old ways of thinking and old models to create transformational eco-systems that deliver on their ambitions.
*KPMG surveyed over 100 Insurance CEO’s from across 10 markets.