Insurance CEOs cautious about commercial outlook
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A new PricewaterhouseCoopers report has found that insurance CEOs are more cautious about the immediate commercial outlook than CEOs in other sectors.
Fifty eight percent of executives surveyed said that the industry has already started recovering or will do so by the end of 2010, compared to an overall average of 72 percent. Similarly, only 13 percent are very confident of being able to increase revenues over the next 12 months, compared with 31 percent of the total survey sample.
Insurance CEOs are more likely than CEOs in other industries to anticipate that the reporting requirements for quoted companies will become more onerous; 67 percent think the requirements will become ‘moderately’ or ‘significantly’ harder, compared with 55% of the total survey population.
When it comes to climate change, while insurance CEOs are more concerned than CEOs in other sectors, they are less likely to be preparing for climate-change initiatives in the coming 12 months. This split vision may stem from the fact that most insurers believe climate change is not particularly relevant to their internal business models, although it has huge potential consequences for non-life companies, because it increases the risk of natural disasters. Reinsurers and property casualty firms have taken a leading role in lobbying for coordinated climate change remedies.
