What are the challenges facing New Zealand insurers in 2024?

Gallagher Bassett has published its annual insurer survey report, titled “The Carrier Perspective: 2024 Claims Insights.”

The report compiles responses from over 150 participants, offering a comprehensive look at the upcoming challenges and areas of focus for New Zealand's insurance industry. It identifies regulatory shifts, the integration of hybrid work models, and the impact of climate patterns as crucial elements that insurers need to prepare for in the coming year.

Key challenges facing New Zealand insurers in 2024

Key findings from the report include:

• An overwhelming 84% of participants from around the globe stressed the critical role of competitive salaries in keeping staff.
• Eighty-three per cent of insurance companies in New Zealand and Australia view the adherence to data privacy and security regulations as a major hurdle.
• Seventy-four per cent of these insurers rely on climate-related data and analytics for effective risk assessment and underwriting procedures.
• Significantly, 67% of insurers worldwide are turning to generative AI chatbots for enhancing customer service, highlighting a shift towards reliance on AI technologies in the industry.

How insurers can navigate challenges in 2024

Steven Walsh, chief client officer of Gallagher Bassett in New Zealand, noted the significant potential for insurers to leverage advancements in data analytics and artificial intelligence.

“One of the key opportunities for insurers lies in the advancements in data analytics and AI. These technologies have the potential to revolutionise the insurance industry by improving underwriting precision, streamlining operations, and providing personalised customer experiences,” he said. “By embracing digital transformation, insurers can increase efficiency and cost savings, benefiting both themselves and their policyholders. By embracing proactive strategies, insurers can continue to thrive in this fast-paced and dynamic landscape.”

Gallagher Bassett also recently offered tips on navigating organisational crises effectively.