Switzerland’s non-life insurance industry is being affected by a range of new and upcoming regulatory initiatives, as well as by deep-rooted changes in technology and customer behavior. Such changes represent a major test for traditional business and operating models. KPMG’s latest publication, “Clarity on Non-Life Insurance – Evolution or revolution for Swiss insurers?” addresses some of the more fundamental shifts, and presents discussion and analysis of what it means for the industry. In short, it allows insurers to gauge their response to one very simple question: ‘Is my business prepared for tomorrow’s market realities?’
By levelling the playing field, will tax reform be a boon or a burden?
The disappearance of Switzerland’s tax privilege regime, and its replacement by an internationally recognized tax system may cause short-term concern. But we would suggest that as an already highly internationalized economy, Switzerland has the chance to stand out from the crowd and prosper in the new tax era.
Revolutionizing risk management. Are you planning for the impacts of ORSA?
Strategy, decision-making processes, internal and external reporting, and overall risk management approaches. It would be difficult to overstate the potential impacts of Switzerland’s new ORSA framework. But with diligent planning and careful consideration, implementation of the new requirements may prove a much-needed catalyst for transformation of how insurers carry on their business.
A busy time ahead for compliance and risk functions
It may be the larger, more internationally oriented insurers who are initially impacted most by cross-border regulatory developments. But regulatory change has a habit of filtering down. From Insurance Core Principles to the Global Insurance Capital Standard, insurers of all shapes and sizes would be well advised to assess how they would comply with new requirements.
Building dynamic business models for the digital age
Smart data analytics will be even more critical going forward than they are today. To enable them requires an intelligent combination of technology and the human touch – without which, a true digital transformation will prove elusive.
Enhancing transparency, innovation and ease of use
As the CEOs of smile.direct and bonus.ch seek to build competitive advantages around IT infrastructure and swift, straightforward access for customers, they share their views on what is required to offer an efficient, individualized service.
Maintaining tradition alongside innovation
As real-time interaction with clients necessitates a greater and ever more effective use of technology, there is a significant challenge around how to build the personal touch in the delivery of solutions. The CEO and head of insurance of Mobiliar offer their insights into how such a combination can be achieved.
Tackling these various issues will demonstrate how well positioned an insurer is for the future marketplace. In our view, change is not a choice – it’s necessary if an insurer is to remain fit for purpose. And with so many challenges and opportunities emerging from so many quarters, transformation will be a prerequisite for success.
Full survey Clarity on Non-Life Insurance