PWC AND ORACLE
“ One of the trends we ’ re seeing across the industry , is a shift towards wanting to get more into the FP & A space and get a better understanding of data and projections ”
TONY BOWERS PRINCIPAL , PWC
Hall , the leader of PwC ’ s US Oracle Strategic Alliance , has more than 20 years of experience in technology consulting and helps PwC drive client value through concentrated investments and strategic alignment with Oracle .
They are joined by Senior Director for Product Services at Oracle Financial Services Geetika Chopra .
In her role , Chopra leads product management for insurance analytics , accounting standards and products for banking and insurance companies .
For our interviewees , it is important to first understand the industry ’ s macroeconomic pressures and trends before addressing how technology can help manage these pressures and take advantage of the trends .
Global insurance trends in 2023 Over the last few years , perhaps no pressure has been as great as the rising costs in property and casualty ( P & C ) lines of insurance , driven to unprecedented levels as the rate of claims has increased dramatically . Increases in reinsurance costs and personnel costs have been significant for insurers also .
In the US alone , according to the American Property Casualty Insurance Association ( APCIA ), there were at least 10 catastrophes in 2021 and 2022 , causing more than US $ 1bn in losses for insurers , driving up property catastrophe reinsurance costs . For Maher , it ’ s clear this points to more risk in the sector , and , therefore , higher claim rates . Inflation has also made these claims more expensive on a relative basis .
He says : “ There are different types of risks now in our world , whether it ’ s cyber risk , which has claims and liabilities associated with it , or the effects of climate change , which is also introducing novel types of risks and opportunities for new products .
“ Globally , insurance companies are working with sector authorities and regulators to consider rate increases to cover both the higher volume of claims and the higher expenses associated with these claims .
“ On the other hand , we have observed a continuing trend in recent years where P & C organisations are still looking at the small and middle market commercial specialty niche with the potential for outsized performance .”
The trend looks set to continue , with natural catastrophe claims up by around 30 % on expected levels in the first half of 2023 , according to APCIA , dragging down the broader market .
The issue for , and subsequent pressure on , insurers comes from affordability . Many residents in natcat-prone areas are often unable to afford rising premium costs .
48 February 2024