The insurance industry landscape
Profitability is somewhat mixed across the global insurance industry. There is a clear disparity between the profitability of firms in the UK, compared to those in the US.
While around two-thirds of the global insurance market is profitable, the US industry reports healthier profit margins, with one-quarter enjoying high profitability. This is compared to just over 10% for UK firms.
Despite the long-term success and stability of the insurance sector, market disruption presents a threat to the industry. It also faces significant operational challenges and complexities.
The AutoRek global insurance survey
To fully understand the challenges facing the industry, we surveyed 500 insurance professionals at the end of 2022.
Evenly split between the UK and US markets, respondents told us their strategic priorities, biggest challenges, and their opinions on operations, technology, and financial controls.
Our findings revealed a number of insights, including the following:
- 36% of firms say the availability of skilled staff is the biggest challenge when completing daily operational processes, while 36% say it is process complexity
- More than one-third of firms still rely on spreadsheets for their reconciliations
- Faster processing times are the key driver behind automation initiatives for 40% of respondents
- 100% of accounting teams struggle with the speed of manual processes
- Over the next two years, firms plan to increase their technology budgets within accounts receivables and operations – and decrease them within finance and accounting
Download the full insurance industry outlook to learn more about:
- The strategic priorities of insurance firms in 2023
- The biggest challenges facing firms around reconciliations and financial controls
- How far insurance firms are investing in technology and automation to drive operational efficiency
- How firms are adapting to comply with regulatory requirements, such as for Solvency II and IFRS 17
- How the results reflect our observations of the industry – and how firms can create processes that address common challenges, drive growth, and achieve compliance
To access this resource, please complete the short form provided.
Get ready to transform your reporting processes
Book a demo