Moody's report low interest rates a big 2017 challenge as Insurer's CFOs seek higher returns.
Good opportunity for analogue insurers to direct some of that to digital transformation before more digitally savvy carriers and brokers steal a competitive advantage.
Take McKinsey's warning that effective digital transforming first movers tend to steal the lion's share of profits.
Moody's report, "European Insurance: Insurers Ready to Deploy Excess Capital in 2017.. One third of survey respondents named prolonged low interest rates as the top challenge in 2017, down only slightly from last year, as insurers are still forced to reinvest maturing assets at lower rates of return than historical level. ... Around 90% of respondents said they had made investments in technology to improve customers' access to their services, make greater use of "Big Data" and improve back office functionality. Insurers' next investment focus will likely be Artificial Intelligence and the Internet of Things, which refers to the interconnection via the Internet of computing devices embedded in everyday objects.