The number of insurance executives who say that regulatory and legislative pressures are the most significant obstacles to growth edged up during the year past, a new report reveals.
This is among the highlights of a KPMG Insurance Industry Outlook survey, which was conducted in Spring 2013 and reflects the responses of 101 senior executives in the insurance industry. Based on revenue in the most recent fiscal year, 33 percent of respondents work for institutions with annual revenues exceeding $10 billion, 40 percent with annual revenues in the $1 billion to $10 billion range, and 27 percent with revenues in the $100 million to $1 billion range.
Six in ten insurance executives surveyed by KPMG LLP, flag regulatory and legislative issues as the top barriers to business expansion, up from 47 percent in KPMG’s 2012 survey and 41 percent from 2011. Two years ago, most survey respondents (59 percent) identified business costs as a top concern.
“In just two years, industry executives have abruptly diverted their attention from pricing concerns to regulatory matters,” said Laura Hay, national leader of KPMG LLP’s insurance practice. “This turnabout is even more significant when you consider that economic conditions have only slightly improved during this time period, so the combination of these two factors creates an exceptionally challenging market.”
Most respondents (51 percent) agree that of all the new regulations, the implementation of the Affordable Care Act (ACA) (51 percent) would have the most significant impact on the industry.
Among the report’s additional findings: