Insurers confident on growth
Insurance executives from all over the world are expecting growth in the next 12 months, and Australian insurers are even more optimistic than their global counterparts.
A survey by KPMG of 315 industry executives from 49 countries has found 55% expect an improvement in organic growth and 53% expect an improvement in growth by acquisition or takeover during the next year.
KPMG Australia Head of Insurance Brian Greig says the outlook for Australian insurers is probably even more optimistic than the global results.
“We have one of the most strongly capitalised insurance sectors in the world right now,” he said. “Australian insurers have stuck to their core businesses, which has lessened their exposure to the capital markets.
“The insurance industry has not been so deeply affected by current economic conditions and Australian executives are perhaps more optimistic about their prospects for the coming year.”
Nevertheless, insurers across the globe are showing many signs of confidence. Asked about their business prospects as they relate to premium volume, 53% expressed confidence. The same percentage said they’re confident about their expense ratios, and 47% weren’t worried about their capital reserves.
But they’re not happy with their share price, with only 40% expecting to see an improvement in the next year.
Meanwhile, 81% of the insurance executives questioned have increased the level of priority they place on market risk in the past year, and 79% on credit risk.
A survey by KPMG of 315 industry executives from 49 countries has found 55% expect an improvement in organic growth and 53% expect an improvement in growth by acquisition or takeover during the next year.
KPMG Australia Head of Insurance Brian Greig says the outlook for Australian insurers is probably even more optimistic than the global results.
“We have one of the most strongly capitalised insurance sectors in the world right now,” he said. “Australian insurers have stuck to their core businesses, which has lessened their exposure to the capital markets.
“The insurance industry has not been so deeply affected by current economic conditions and Australian executives are perhaps more optimistic about their prospects for the coming year.”
Nevertheless, insurers across the globe are showing many signs of confidence. Asked about their business prospects as they relate to premium volume, 53% expressed confidence. The same percentage said they’re confident about their expense ratios, and 47% weren’t worried about their capital reserves.
But they’re not happy with their share price, with only 40% expecting to see an improvement in the next year.
Meanwhile, 81% of the insurance executives questioned have increased the level of priority they place on market risk in the past year, and 79% on credit risk.