The insurance industry faced strong headwinds, crosswinds and (a few) favorable tailwinds in 2016. It was a dramatic, unpredictable year, which saw political upheaval, an extremely challenging commercial environment, continuing changes in regulatory standards, and increasing friction among regulators and other government actors. Significant developments included:
- Brexit − the reality of which is yet unknown, but the impact of which is already being felt
- The election of Donald Trump as President of the US, which raises profound questions concerning how the US will engage with global markets and the US approach to financial services regulation
- The first full year of Solvency II regulation in Europe
- Mega insurance deals agreed, then thwarted
- A dramatic acceleration in development, deployment, and investment in insurance-oriented technology (InsurTech) by many in the industry and disruptors who seek to transform it
- A historic "covered agreement" between the EU and the US on insurance regulatory accommodation, which may or may not survive the new political realities in the US, but which could help define the relationship between the two largest insurance markets in the world
- Persistent low interest rates/investment yields, continued softening rates for many insurance products and greater competition for customers across almost all sectors of the industry.
Our Insurance Sector Trends: Forecast for 2017 and 2016 Year End Review
looks at these and other developments from around the world and offers some of our thoughts on how these interrelate and, most importantly, how they may affect your business. We expect 2017 will see the pace of change and the challenges increase. Developments to date suggest this is so.
Read our Insurance Sector Trends: Forecast for 2017 and 2016 Year End Review
Learn more by contacting your DLA Piper lawyer or any member of our Insurance team.