WEBVTT

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(upbeat music)

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The interplay of economic, political,

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regulatory, and market shifts is fast resetting

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the strategic imperatives for insurers.

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In this ever-revolving environment

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insurers need a clear vision of the future.

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Management teams want to challenge their future plans

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by asking key strategic questions.

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What major market shifts and scenarios

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should we prepare for?

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Are there any product lines and markets

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we should consider entering or exiting?

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BCG's insurance pools under the umbrella of INSights

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tries to to demystify these questions.

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It offers competitive advantage

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in terms of data granularity,

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like profitability by products, driver-based forecasting,

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ability to address client-specific scenarios.

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Our profit pools go much deeper

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than regression-based approach by analyzing

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the underlying drivers of business.

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For non-life factors like employment,

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business performance, trade, miles driven,

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automation, pricing cycle, inflation.

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For life, old-age pension gap, share of alternatives,

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maturity curve, investment yield, cost profit,

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and many more increase the robustness of forecasts.

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It makes for a more action-oriented

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discussion at the clients.

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When fully developed, profit pools will cover

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more than 22 countries globally

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with 90% of global premiums.

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This wealth of data will yield rich business insights

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like general liability in Japan is profitable

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despite falling prices reflecting

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the country's benign ligation culture

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and preference for out-of-court settlement.

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Even at similar ROE levels.

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Large variation is observed in source of life profit

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with France, purely driven by investments

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and Germany and Japan relying on risk and mortality.