Insurance companies fear insolvency after 2020 decline
Accenture has released a new report, stating that insurance companies look set to shrink following the 2020 global recession caused by COVID-19.
The multinational professional services company which reported revenues of US$43.2 bn last year, offers data-driven solutions to combat stagnation and discourage radical, knee-jerk cost-cutting which can be harmful to recovery years later.
The report, called Strategic Plays for Recession Recovery, explores the actions of 4,700 public companies. It also examines the finite balance of strategies historically, out-performing companies have employed, to ensure they remain solvent and stable in the event of a global crisis.
There is a section that examines the organisations that have thrived within the crisis environment too.
A statement released by Accenture said; “Looking at recessions past, we find time-tested strategies to help weather the recessionary storm and come out stronger. Research shows the actions that 4,700 public companies from various sectors took during the previous three global slumps.”
It goes on to reveal that a staggering 80% of surviving companies failed to match their pre-slump growth targets 36 months or more after the recession had passed and that only 9% of recession survivors had found themselves in an advantageous fiscal position after a downturn.
An analysis of data also shows strategies that assisted in recession recovery, and insurers that combined selective budget-cuts with strategic investments in sectors of competitive advantage, they were increasingly likely to grow and outperform once the recession finished.
The statement continues, “Time-tested patterns of success consist of structural cost improvements coupled with strategic investments to drive revenue. The approach outlined in our report is vital for insurers to successfully navigate the current environment and emerge stronger. Insurers that outperformed following the Dotcom bubble burst and Great Recession generally combined two key plays.”
Structural cost reduction and strategic reinvestment of savings are examined, as are time-tested data strategies that lead to an empowered approach to the crisis. The report goes on to look at areas of resilience and the latest innovative solutions to combat uncertainty.
The Ultimate FinTech & InsurTech LIVE Event
From October 12th-14th, 2021, BizClik’s FinTech & InsurTech event will bring together influential executives from around the world. Streamed live from Tobacco Dock, London, this three-day event will be an excellent way to finish the year strong, gaining the confidence your company needs to move forward into the future.
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The event will include:
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Meet the Speakers
Each week, from now until the event, we’ll be announcing the latest speakers who are set to grace our physical or virtual stage, prepared to share their knowledge and insight with attendees.
Our second batch consists of:
Currently the Senior Vice President of Business Development & Fintech for Mastercard UK & Ireland, a position he’s held since 2014, Abraham describes himself as “a proven and successful senior sales leader with experience across a wide range of industries, sectors, and channels.”
Graduating from the University of Northampton in 1994 with a BA in Economics and Law, he worked for nine years at Sainsburys - eventually responsible for banking the company’s revenue and running its ATMs - and then Barclaycard for three years as Head of Client Management. In 2007, Abraham became VP of Client Management at American Express, and then VP and GM Global Supplier Relations EMEA in 2012.
In his current role at Mastercard, Abraham is accountable for the acceptance of all payments and products through all channels, devices, and technologies across UK and Ireland. In addition, he oversees the deployment of innovative new payment tech within the region.
Fraser-Hawkins’ role as CEO, UK Corporate, at Marsh McLennan is the continuation of a long and successful insurance career, which has included being London Sales Director for JLT Group and Branch Director for Willis Towers Watson.
Marsh prides itself on being a company that hires top-tier talent, does work that impacts peoples’ lives, and offers its employees the opportunity to make a difference. This is clearly an attitude that aligns with Fraser-Hawkins’ own values; regarding the insurer’s UK Young Professionals initiative, a support network to help young professionals in their development, he said:
"I am passionate about developing talent and our Young Professional CRG provides a brilliant community for our Young Professional colleagues to discuss key issues relevant early in their careers, as well as an environment to promote the skills, learning and network for success."
Massaro is currently the CEO of Boston fintech Flywire, a role he took on in 2013. He first joined the team in 2012 as VP of Business Development, but it wasn’t long before his entrepreneurial skills were redirected to leading the entire company’s high-growth strategy worldwide.
An expert in domestic and international payments and billing, enterprise technology sales, strategic alliances, enterprise software, SaaS, product management and marketing, and much more, Massaro is a consummate finance professional whose credentials befit the leadership of a prominent global payments fintech.
His previous positions include Consultant at PwC and Product Line Manager at Oracle, and he maintains a Mentor role at startup accelerator MassChallenge. He graduated magna cum laude from Babson College with a BS in Information Systems and Finance.
This event is set to be one of the year's most unmissable. If you want to get leading perspectives on the future of fintech and insurtech, go to Eventbrite and purchase your tickets now.