The Future of Large Commercial Insurance: KPMG

Helping to drive the future of insurance transformation

Toronto, ON (July 29, 2022) – The business landscape is changing rapidly. Despite strong market performance, traditional commercial insurance business models are coming under pressure from swirling changes that now have the sector on the cusp of a radical transformation.

To survive and thrive in this new environment, commercial insurers shouldn’t stand still. They need to evolve and build new differentiated capabilities that connect across the organization. Technology will be critical, but digital transformation goes well beyond technology.

Insurers need a clear, client-led business design of their end-to-end process that should be driven by deep client, broker and market insights. It should be underpinned by a digitally-enabled technology architecture and empowered workforce. In our view, it is only by taking this “connected” approach that insurers can achieve true value from their digital transformations.

In our latest report, KPMG spoke with over 400 decision-makers from commercial insurance organizations across the globe to better understand the evolving trends and their impacts on the future of the sector, alongside what we believe will be the three winning business models of the future.

Signals of change

Insurance business models continue to function and the market remains buoyant. However, traditional commercial insurers are coming under pressure from swirling changes from both internal and external factors that now have the sector on the cusp of a radical transformation. In the latest report, we discuss the five key signals of change and the impact these may have.

  • Client and broker expectations: Clients and brokers expect a cutting-edge experience — every bit as sophisticated and customized as they experience in their personal lives. Meanwhile, the rise of insurtechs in the commercial space is starting to add competitive pressures focused on client pain points.
  • Economic uncertainty: The recovery from COVID-19 remains uncertain. The crisis in Ukraine has unleashed an unprecedented range of business impacts. Inflation is on the rise and governments are rethinking interest rates. We believe that navigating this uncertainty will require commercial insurers to be able to dynamically adjust their strategy.
  • Regulatory and legal deglobalization: The world order is changing and that has catalyzed a shift towards more assertive national regulation in some markets. Combined with ongoing concerns about business and supply chain resiliency, many commercial insurance players are starting to find the regulatory landscape more fractured and complicated than ever before.
  • Technology evolution: New technologies are permeating throughout the insurance industry, providing commercial insurers with a range of new opportunities to help meet expectations, drive efficiency and encourage innovation. Industrial automation, robotics and artificial intelligence (AI) are providing new opportunities for insurers to streamline processes, as well as gather and analyze data.
  • Environmental, social and governance (ESG) activism: ESG factors aren’t just impacting the risk landscape for commercial insurers. They are also influencing the scrutiny insurers face from key stakeholders, including regulators, investors, employees, clients and the general public. While ESG may sometimes feel like a distraction from the core business, the reality is that it is critical both to stakeholders and future growth.

The Future of large commercial insurance

Find out which three business models KPMG believes will dominate the commercial insurance market.

Download the full report to discover the latest insights and trends that are shaping the large commercial insurance industry.

About KPMG International

KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. We operate in 146 countries and territories and in FY20 had close to 227,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients. Learn more at

SOURCE: KPMG International

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