The insurance industry must change its culture to thrive in future, according to a PricewaterhouseCoopers (PWC) report on global trends and responses.

It can prosper as people live longer and have more wealth to protect, but it must “keep pace with the sweeping social, technological, environmental, economic and political developments ahead”, the Insurance 2020 paper says.

Insurers must “sharpen agility and innovation” to see off the growing threat from “nimble new entrants” to the market.

And they should re-engage with customers to “meet their more exacting expectations over ease, responsiveness and price”.

There needs to be a focus on “moments that matter” – the critical decisions that win and keep business.

The key to success is cultural change within organisations, PWC says. “A more agile, innovative, risk-conscious and customer-centric culture is set to be the primary competitive differentiator in the new landscape – if you want to spur real change and deliver real value, look at your people and the environment in which they operate.”

Many companies fail to adjust because “high-level intentions” do not translate to “real changes in the way their people behave and make decisions”.

PWC outlines five “golden rules” for a strong culture: purpose, vision and values that are clear, tangible and actionable; focus on moments that matter; active leadership; support and investment; measurement, feedback and adjustment.

The industry in Australasia has been tested by major events such as the Canterbury earthquakes, floods and bushfires, according to PWC partner and NZ Insurance Sector Leader David Lamb.

“Such incidents have provided plenty of moments that matter,” he told insuranceNEWS.com.au. “You never get it 100% right but if you want to get a competitive advantage, the ones that respond best will succeed.”

Rate of change is a serious challenge for an industry that has worked the same way for decades, he says.

“Getting the culture right is critical. You need to embrace this change and stop doing things the way they’ve been done for the past 20 years.

“It is all about your customers and if they want to engage with you via online social media, then you have to be up for that. If you want outcomes, don’t focus on the outcomes, focus on the processes and the actions that get you there.”