Lack of innovation is insurers' stumbling block - KPMG
Source: Asia Insurance Review | Aug 2015
Insurers are struggling with innovation, which is preventing them from capitalising on potential new market opportunities, according to a new report from KPMG International’s report “Demystifying the public-private partnership paradigm” launched at the recent IIS Global Insurance Forum in New York.
The report noted the role insurers can play in responding to global challenges including climate change, disaster resilience, infrastructure investment and saving for old age to aid economic sustainability. It also highlighted the significant commercial opportunities for insurers in addressing these challenges, such as securing significant returns by providing long-term debt financing solutions in areas such as flood defence.
Mr Gary Reader, Global Head of Insurance at KPMG International said there is much to be done in educating policymakers about the important role the insurance industry can play in achieving sustainability goals. However, it is clear that nobody expects the industry to shoulder these risks and challenges alone.
“With the insurance industry continuing to play a more active role in helping the world respond to seemingly intractable global challenges such as climate change, disaster resilience and economic sustainability, insurers are cultivating new and innovative partnership agreements.”
“We are already seeing some of the world’s leading insurance groups taking significant steps by creating and growing partnerships with public, private and non-governmental organisations. Those who have innovation at the heart of their business can capitalise on these opportunities,” he added.