Core Insights - The global insurance industry is entering a phase of slowed growth and profit pressure, moving away from a decade driven by scale [6][8] - External factors such as economic fluctuations and geopolitical tensions continue to impact traditional profit models, while climate change poses significant risks to property insurers [6][8] - The competitive landscape is shifting from a focus on licensing and scale to one centered around technology, capital, and service capabilities [8][35] Non-Life Insurance Sector - The non-life insurance sector is facing a new pressure phase after exiting a difficult underwriting cycle, with global premium growth expected to slow down [10] - The underwriting cost ratio in the U.S. is projected to rise from 97.2% in 2024 to 99% in 2026, further compressing profit margins [10] - Factors driving cost increases include tariffs, supply chain disruptions, labor shortages, and rising material prices, particularly affecting auto and property insurance [10][11] - Legal risks are increasing complexity in non-life insurance, with rising litigation financing leading to higher claims rates and severity [10] Life and Annuity Insurance - Life insurance premium growth is slowing in developed markets, while annuity sales in the U.S. are expected to reach $432.4 billion in 2024, continuing strong growth [13] - The asset management size in the insurance industry is projected to grow by 25% to $4.5 trillion by 2024, with personal credit becoming a larger share [14] - The integration of private equity into the insurance sector is accelerating, reflecting dual pressures on both asset and liability sides [15][16] Group Insurance Sector - The group insurance sector is evolving towards a tighter integration of employee benefits and insurance services, with new growth areas emerging [20] - The B2B2C model in group insurance emphasizes the importance of user experience for both employers and employees [21] - Digital access capabilities are becoming critical in group insurance competition, with companies needing to integrate products into employer benefit platforms [23] AI and Technology Integration - The report highlights that the main barrier to scaling AI in the insurance industry is not the algorithms but rather data quality and system infrastructure [26][29] - Successful AI applications are being implemented across various functions, such as underwriting and claims processing, enhancing efficiency and service delivery [30] - The future insurance workforce will need to focus on complex problem-solving and customer engagement rather than routine tasks [30] Customer Experience Transformation - Customer expectations are shifting towards speed, convenience, and personalization, necessitating a move from "omni-channel" to "channel adaptation" [33] - Insurers must provide seamless service experiences, with simple requests directed to self-service channels and complex inquiries handled by experienced professionals [33] - The overall competitive structure of the insurance industry is being redefined, with technology, capital flexibility, and customer-centric service systems becoming key competitive factors [35]

Core Insights - The global insurance industry is entering a phase of slowing growth and profit pressure, moving away from a decade driven by scale [1] - The competitive paradigm is shifting from reliance on licenses and channels to a focus on technology, capital, and service capabilities [2] Non-Life Insurance Sector - The non-life insurance sector is experiencing a "tech war" focused on technology and cost evolution, with global premium growth expected to slow down [3] - The underwriting cost ratio in the U.S. is projected to rise from 97.2% in 2024 to 99% in 2026, further compressing profit margins [3] - Factors driving cost increases include tariffs, supply chain disruptions, labor shortages, and rising material prices, particularly affecting auto and property insurance [3] - Legal risks are increasing complexity in non-life insurance, with third-party litigation financing spreading to various markets, raising claims rates and severity [3][4] Life Insurance and Annuities - Life insurance premium growth is slowing in developed markets, while annuity sales in the U.S. are expected to reach $432.4 billion in 2024, with strong growth continuing into 2025 [6] - The insurance industry's managed asset scale is projected to grow by 25% to $4.5 trillion by 2024, with personal credit's share increasing to 21.1% [7] - The integration of private equity into life insurance reflects dual pressures on both asset and liability sides [8] Group Insurance Sector - The group insurance sector is evolving towards a "B2B2C" experience, with new growth in niche areas like workplace childcare support and gig economy insurance [13] - The competitive edge in group insurance is increasingly determined by the ability to provide an exceptional end-user experience [14] Technology and AI Integration - Technology is becoming crucial for enhancing actuarial capabilities and controlling claims costs, with applications like generative AI and IoT being implemented [5] - AI is being used to automate underwriting and claims processes, significantly improving efficiency without expanding workforce [17][19] - The insurance industry faces a talent shortage in professionals who understand both insurance and data science, necessitating a strategic transformation in talent management [21] Customer Experience and Service Transformation - Customer expectations are shifting towards seamless service characterized by speed, convenience, and personalization [22] - The transition from "omni-channel" to "channel adaptation" reflects a need for intelligent guidance based on customer intent and business complexity [22] - Companies like Cigna are linking employee compensation to service metrics to enhance service culture, supported by technology [22] Structural Changes in the Insurance Industry - The long-standing reliance on scale, products, and channels is being replaced by new competitive structures focused on technology, capital flexibility, and customer value [24] - The insurance industry is facing a structural transformation that will redefine competition over the next decade, with leading firms likely to integrate technology development, customer experience design, and platform ecosystem capabilities [24]