Allianz: Insurers Focus on Growth Despite Compliance Hurdles
The global insurance and assistance services sector continues to push for international expansion despite mounting regulatory pressures and geopolitical uncertainty, according to new research from Allianz Partners. The findings come as insurers navigate an increasingly complex operating environment marked by shifting consumer demands, evolving regulatory frameworks, and persistent market volatility.
The research, based on interviews with 181 businesses across seven markets, provides insights into how insurance and assistance companies are adapting their strategies in response to these challenges, and arrives at a time when the insurance sector faces pressure to modernise operations while maintaining compliance across multiple jurisdictions.
Regulatory hurdles in the insurance sector
The survey, conducted by market research firm Ipsos, found that 19% of respondents cite regulatory compliance as their main business challenge, ahead of geopolitical risks at 18%. This highlights the growing complexity of operating across multiple jurisdictions in the insurance sector, where requirements can vary significantly between regions.
- 45% of business partners identify international expansion as their primary growth opportunity
- Only 14% see digital transformation as a key business opportunity
- 19% cite regulatory compliance as their top business challenge
- Just 12% identify rising costs as their main concern, despite global inflation pressures
The findings emerge from Allianz Partners’ 2024 B-Partner Lab survey, which gathered responses from businesses across procurement, sales, IT, finance and operations functions in markets including Australia, Brazil, France, Germany, Italy, UK and the USA.
Growth opportunities
The research reveals that 45% of respondents identify market expansion as their primary growth opportunity for the next two years, suggesting a strong appetite for international growth despite the operational complexities involved. However, only 14% of businesses surveyed point to digital transformation as a key opportunity, suggesting a potential disconnect with the broader trend towards digital business models in the insurance sector.
Insurance programmes and policies represent a growth opportunity for 27% of respondents, indicating sustained demand for traditional insurance products alongside newer service offerings. This figure suggests that core insurance products remain central to growth strategies, even as firms explore new markets and service models.
Rising cost pressures
Despite the ongoing impact of inflation on global markets, only 12% of businesses surveyed identify increased costs as their main challenge. This suggests that regulatory and geopolitical concerns are taking precedence over operational cost pressures for insurance sector businesses, marking a shift from previous years where cost management often topped the agenda.
Jacob Fuest, Chief Markets Officer and Board Member at Allianz Partners, says: “45% of our partners see growth for their business as their top opportunity. This highlights the vast potential in international expansion, and it shows how our truly global network of employees and providers is a real asset to our partners.”
Regulatory environment
The increasing burden of compliance across different jurisdictions emerges as a significant theme throughout the research. The findings indicate that firms are dedicating substantial resources to meeting regulatory requirements, potentially at the expense of other strategic initiatives.
“The increasing complexity of regulatory and compliance requirements, particularly for businesses operating across multiple regions, is becoming a significant obstacle to both innovation and market entry,” says Jacob.
The relatively low priority given to digital transformation also raises questions about the sector's preparedness for technological change. While many industries have embraced digital innovation as a core driver of growth, the insurance sector appears to be taking a more measured approach.
Shifting market dynamics
The findings suggest a sector focused on traditional growth metrics while grappling with an increasingly complex operating environment. The emphasis on international expansion indicates confidence in cross-border opportunities, despite the acknowledged challenges of regulatory compliance and geopolitical risk.
“It is more business critical than ever to fully address the legal and regulatory demands of various markets in a safe and reliable manner, while at the same time offer flexibility for business growth,” says Jacob.
“We are proud to accompany and support our partners in scaling offers to wherever they are operating,” he adds. “At the same time, we believe the lower emphasis on digital transformation shows there's a need for further dialogue on how digital tools can be a catalyst for growth.”
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