Leaders prioritize generative AI and talent acquisition as they navigate cybersecurity concerns and sustainability goals
A recent KPMG survey of 120 global insurance CEOs reveals a strong sense of optimism about their companies’ growth potential over the next three years, despite mounting challenges in digital transformation, talent acquisition, and Environmental, Social, and Governance (ESG) initiatives. According to the KPMG CEO Outlook, now in its tenth year, 74% of insurance executives expect growth in both profits and workforce size, with 93% predicting an increase in staff during this period.
However, these optimistic projections come as CEOs face a rapidly evolving landscape, particularly as they aim to drive digital innovation. Talent acquisition remains a significant hurdle, with companies racing to attract and retain skilled professionals essential for implementing technology-driven changes. Digital transformation is a major focus, as CEOs push for operational efficiency and enhanced customer experiences.
The survey also highlights growing concerns about cybersecurity. Only 54% of insurance CEOs feel well-prepared for a cyberattack, a notable decline from 66% the previous year. Additionally, just 43% of respondents express confidence that their cybersecurity strategies can keep pace with the rapid advancements in artificial intelligence (AI). Given this, a remarkable 81% of insurance leaders have identified generative AI as a top investment priority, seeing it as crucial for workforce expansion and enhancing digital capabilities.
ESG issues are also taking center stage. Sixty-three percent of insurance executives are confident they will meet their net-zero emissions targets by 2023, underscoring the industry’s growing commitment to sustainability. These efforts are seen as vital not only for regulatory compliance but also for building long-term value and meeting the expectations of environmentally conscious customers and stakeholders.
Frank Pfaffenzeller, Head of Global Insurance at KPMG International, noted that while insurance CEOs are enthusiastic about growth, they are aware of the challenges ahead, especially in areas of digital transformation and sustainability. “Insurance leaders recognize the importance of acquiring new talent and adopting emerging technologies, particularly generative AI, to achieve their objectives. Those who can advance more quickly toward a sustainable and digitally enabled future will have a distinct advantage in the market,” Pfaffenzeller said.
As the insurance industry continues to evolve, the ability to balance growth ambitions with digital advancements, cybersecurity resilience, and ESG commitments will likely determine which companies emerge as future leaders.
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