Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • June 2015
06

Nearly half of insurers lack formal innovation strategy 

Open-access content Monday 22nd June 2015 — updated 5.13pm, Wednesday 29th April 2020

Insurers need to innovate to tackle global risks such as sustainability, but a “worrying” 45% of insurers admit they have no formal strategy for achieving this, KPMG has warned.

2

In a report, the consultancy said innovation would enable insurers to find commercial opportunities in addressing the world's environmental and economic challenges through partnerships with organisations such as governments and NGOs.

Based on a survey of 280 insurance executives across 20 countries, the report found 40% of respondents considered innovation to be an informal collective responsibility for the entire organisation. Another 8% said their chief innovation officer should be responsible for new ideas.

In addition, 74% said they lack the core skills to drive innovation. Some 79% say they are "just trying to keep up" with what they are already doing, while 14% said they lacked the board-level sponsorship required to drive innovation.

Gary Reader, global head of insurance at KPMG International, said: "Our experience suggests that insurance organisations will need to improve their focus on driving innovation across their organisations if they hope to identify, create and benefit from new partnership opportunities with non-traditional players such as governments, NGOs and infrastructure operators."

Mark Spears, KPMG's global head of people and change, said most organisations were structured to "kill innovation" through regulation and compliance requirements such as "burdensome review processes" and "irrelevant quality controls". 

"There is very little about organisational structures that encourage people to think outside of the box," he added.

KPMG called for global insurers to develop partnerships with the public sector to achieve long-term commercial growth and support global economic development in both mature and emerging markets.

Reader said: "With the insurance industry continuing to play a more active role in helping the world respond to seemingly intractable global challenges such as climate change, disaster resilience and economic sustainability, insurers are cultivating new and innovative partnership agreements.

"We are already seeing some of the world's leading insurance groups taking significant steps by creating and growing partnerships with public, private and non-governmental organisations. Those who have innovation at the heart of their business can capitalise on these opportunities."

This article appeared in our June 2015 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

'Economic growth must be sustainable and avoid boom and bust'

Growth in the post recession world must be sustainable and balanced between economic, environmental and social objectives, an event was told.
Wednesday 24th June 2015
Open-access content
2

Insurers 'must play a strong role' in shaping a more sustainable future, says UN

The United Nations (UN) has urged the industry to work with stakeholders to see how climate risks can be reduced.
Friday 19th June 2015
Open-access content
Drought © Shutterstock

Government 'must act now' to tackle climate change risk

The Committee on Climate Change (CCC) has urged the UK government to act now to reduce carbon emissions and tackle climate change.
Tuesday 30th June 2015
Open-access content
2

ABI urges government to remove mandatory pension advice requirement

The Association of British Insurers (ABI) has urged the government to remove the legal requirement for savers to pay for mandatory advice.
Monday 22nd June 2015
Open-access content
2

Majority of pensioners do not want to sell their annuity

The majority of UK pensioners have no plans to cash in their annuity, the IFoA has found.
Tuesday 23rd June 2015
Open-access content
2

Risk appetite increasingly important for maximising business operations

Risk appetite is increasingly important for insurers as part of their enterprise risk management programme, according to a survey by Towers Watson.
Tuesday 23rd June 2015
Open-access content

Latest from Environment

rdth

Make My Money Matter's Tony Burdon on the practical power of sustainable pensions

Years working in international development showed Tony Burdon, head of Make My Money Matter, that sustainable pensions can harness trillions of pounds to build a better world – at a scale governments and charities can’t. He talks to Travis Elsum
Wednesday 1st March 2023
Open-access content
ty

Data detective

Heard about the chatbot ChatGPT? Artificial intelligence is advancing rapidly, says Arjun Brara – and could soon be used to refine ESG ratings and expose greenwashing
Wednesday 1st March 2023
Open-access content
iugu

Interview: chemist and climate expert Sir David King on how actuaries can save the Arctic

Actuaries can save the Arctic, according to esteemed chemist and climate-change expert Sir David King. He tells Alex Martin that risk management is as relevant to preserving the planet as groundbreaking science
Wednesday 1st February 2023
Open-access content

Latest from June 2015

NEST's blueprint combines drawdown, lump sum and annuity

The National Employment Savings Trust (NEST) has created a retirement strategy blueprint that features a combination of an income drawdown, a cash lump sum and a later-life annuity.
Tuesday 30th June 2015
Open-access content
2

Life insurers report first increase in profits in nine months

Life insurers have reported their first increase in profits since September 2014 and confidence for firms continues to rise, said PwC.
Monday 29th June 2015
Open-access content
2

DB pension liability hedge hits £657bn

Liability driven investment (LDI) continues to “grow significantly” in the UK with hedged liabilities increasing by 29% to £657bn last year, according to a report by KPMG.
Monday 29th June 2015
Open-access content

Latest from small_opening_image

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 06

NEST's blueprint combines drawdown, lump sum and annuity

The National Employment Savings Trust (NEST) has created a retirement strategy blueprint that features a combination of an income drawdown, a cash lump sum and a later-life annuity.
Tuesday 30th June 2015
Open-access content
2

Life insurers report first increase in profits in nine months

Life insurers have reported their first increase in profits since September 2014 and confidence for firms continues to rise, said PwC.
Monday 29th June 2015
Open-access content
2

DB pension liability hedge hits £657bn

Liability driven investment (LDI) continues to “grow significantly” in the UK with hedged liabilities increasing by 29% to £657bn last year, according to a report by KPMG.
Monday 29th June 2015
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Leading Insurer/Asset Manager – Pricing Actuary (Mortgages)

London (Greater)
Competitive
Reference
148750

Senior Consultant - Risk Settlement - Any UK Location - Up to £100,000 plus bonus

London / Manchester / Edinburgh / Remote
Up to £100,000 + Bonus
Reference
148832

Finance Transformation Actuarial student/Qualified Actuary

London (Central)
£50,000 - £75,000 depending on experience
Reference
148830
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ