(upbeat music)
The interplay of economic, political,
regulatory, and market shifts is fast resetting
the strategic imperatives for insurers.
In this ever-revolving environment
insurers need a clear vision of the future.
Management teams want to challenge their future plans
by asking key strategic questions.
What major market shifts and scenarios
should we prepare for?
Are there any product lines and markets
we should consider entering or exiting?
BCG's insurance pools under the umbrella of INSights
tries to to demystify these questions.
It offers competitive advantage
in terms of data granularity,
like profitability by products, driver-based forecasting,
ability to address client-specific scenarios.
Our profit pools go much deeper
than regression-based approach by analyzing
the underlying drivers of business.
For non-life factors like employment,
business performance, trade, miles driven,
automation, pricing cycle, inflation.
For life, old-age pension gap, share of alternatives,
maturity curve, investment yield, cost profit,
and many more increase the robustness of forecasts.
It makes for a more action-oriented
discussion at the clients.
When fully developed, profit pools will cover
more than 22 countries globally
with 90% of global premiums.
This wealth of data will yield rich business insights
like general liability in Japan is profitable
despite falling prices reflecting
the country's benign ligation culture
and preference for out-of-court settlement.
Even at similar ROE levels.
Large variation is observed in source of life profit
with France, purely driven by investments
and Germany and Japan relying on risk and mortality.