Chief executive officers of Caribbean region insurance companies are more confident in their own organisation’s revenue prospects than in economic growth in the region, and are focusing on digital transformation to drive growth, according to a survey conducted by professional services firm PwC.

In order to battle the headwinds and be successful, CEOs are looking towards digital and a sharper focus on changing customer needs as two key areas to differentiate and win, according to PwC’s Caribbean Insurance CEO Survey 2019.

The company’s first biennial survey of CEOs of leading personal lines insurers across the Caribbean has provided unique insights into this market, PwC said.

While generational change is still buffeting the insurance industry, many insurers are becoming more comfortable with new technologies and changing from product-focused to customer-centric organisations.

More than two-thirds of CEOs surveyed have a neutral or negative view of growth in the Caribbean and yet 87 per cent are confident about their own growth, the survey found.

Some 60 per cent of respondents said that they felt either confident or very confident about their own growth prospects in the next 12 to 24 months.

Meanwhile, 60 per cent of CEOs see digital and technological capabilities as their growth catalyst and 26 per cent see the customer experience as being critical as well.

Based on PwC’s Global Annual CEO Survey 2019 — insurance trends, these are two critical areas that insurance companies around the world have been investing in for some time and are beginning to reap the benefits, the company said.

Arthur Wightman, PwC Bermuda and PwC in the Caribbean insurance leader, said: “The current front-runners are redirecting their road maps and investments to high-priority business areas to differentiate themselves in the market.

“Consumers want choice, flexibility, simplicity and personalisation in what they purchase, the channels they use, and how they interact with carriers. Technology modernisation comes in many forms with sensory techniques, mobile technology, risk analytics and ‘internet of things’ connectivity allowing insurers to leap forward.”

Mr Wightman added: “Smaller-scale change can help too with millennials far more likely to purchase insurance online and be comfortable with chat functions, automated claims settlement and the use of telematics. This places digital within reach of companies that do not have multimillion-dollar investment funds.”

Successful technological transformation demands buy-in and upskilling throughout an organisation, PwC said.

Marisa Savage, insurance partner at PwC Bermuda, said: “The majority of the CEOs we surveyed plan to harness technology to bolster profitability and drive growth in their business. The key to success will be approaching technology with the changing customer base at front of mind and finding business partners to enable technology development at an appropriate level of investment for insurers operating in the Caribbean.”

PwC said organisations in the domestic insurance market in The Bahamas, Barbados, Bermuda, Cayman Islands, Jamaica and Trinidad and Tobago took part in the survey.

• To read the full survey, visit www.pwc.com/cb/en/services/pdf/cb-insurance-ceo-survey.pdf