Global Insurance Outlook

Windows of opportunity

2011 global insurance outlook

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Contents

Executive Summary ................................. 1 Asia-Pacific ............................................. 3 Europe .................................................... 13 US life ..................................................... 23 US property/casualty ............................... 29

Windows of opportunity: 2011 global insurance outlook

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Executive Summary

Ernst & Young’s global insurance outlook explores the issues confronting global insurance organizations in 2011. In this report, we offer our perspective on the insurance markets in Asia-Pacific and Europe, as well as the US life and US property/casualty sectors. The key themes for 2011 are:

Asia-Pacific

• Adjusting and expanding distribution strategies amid shifting demographics and consumer buying patterns • Developing strategies to shape and comply with the heightened pace of local and global regulatory and accounting developments • Developing dependable capital sources required to support accelerating business growth • Operational improvements, takaful opportunities and regional hubs

US life

• Responding to the changing regulatory environment • Establishing capital and risk management solutions post-crisis • Improving operational efficiencies to control cost • Reinventing products and distribution to energize growth

US property/casualty

• Operating in a sluggish US economy • Enduring the soft underwriting cycle • Leveraging analytics to drive the growth agenda • Effectively transitioning to the new accounting standards • Anticipating regulatory and legislative developments • Analyzing opportunities for managing excess capital

Europe

• Manage critical capital and risk challenges • Develop distribution flexibility and support systems • Improve process efficiency and develop new markets • Focus on non-life loss control • Optimize corporate structure and domicile

Windows of opportunity: 2011...