The insurance sector today finds itself at an inflection point. An industry fundamentally concerned with risk management is grappling with a range of profound uncertainties that will alter its evolution in the coming years. From the rising incidence of extreme weather events and natural disasters due to climate change to geopolitical volatility and shifting demographics, insurers are facing unprecedented challenges. Longstanding risk models are also being upended by rapid technological advances and evolving market needs.
Some insurance organisations have already proven themselves flexible and resilient in the face of change. They have cast aside their industry’s traditional risk aversion and embraced technological change, new products and customer experiences, even new business models. But the need for adaptability is likely to grow in the coming years. In an environment marked by accelerating global challenges and high levels of uncertainty, many futures are possible.
This Economist Impact report, supported by SAS, offers insurers four different visions of the world and the industry in 2040. Informed by expert interviews, these scenarios offer detailed, plausible paths forward amidst megatrends reshaping the industry. Rather than predicting the future, these scenarios help insurers better position their organisation to successfully respond to dynamic challenges and seize new opportunities.
