Global Financial Leadership Forum 2007
11 Oct 2007
EDS Presents Findings from Global Insurance Study
Attend the Global Financial Leadership Forum
At this year’s forum, Global Excellence: Competing for Sustainable International Expansion, EDS will present the in-depth findings from the “Think Global, Act Local” study. This research will be supplemented with presentations by leading industry executives and break-out sessions, providing invaluable real-life success stories and lessons learned. This year’s forum is sponsored by EDS and American Council of Life Insurers (ACLI).
At this year’s Global Financial Leadership Forum 2007, EDS will present the in-depth findings gathered from interviews with over 200 top insurance executives globally in a study titled “Think Global, Act Local.” The study, which was commissioned by EDS, was conducted by FT Research Centre and will be presented in-depth by John Mara, vice president, EDS Insurance Industry Group, at the conference.
Think Global, Act Local: Excellence in Global Insurance Operations
A once-in-a-lifetime opportunity is unfolding for life insurers. Governments around the world are shifting the burden for funding retirement to individuals, with tax incentives, at a time when the 60+ population will double. Greater financial consistency, deregulation, and global IT infrastructure enable life insurers to go out and capture this market globally.
However, life insurers around the world are going after this market at different paces, and with different operational models. For example, will tomorrow’s profitable globalized insurers have followed a model of decentralised regional hubs, or a structure with decisions flowing from the top down? Is it an acquisitional model or an organic growth model that will create growth in the long term, or is it a matter of balancing both? Once a company is spread over a number of geographies, what glue holds it together – brand, product development, leadership structure, internal communication or a common strategy?
This survey presents the answers from more than 200 representatives from insurers all over the world, including some of the world’s largest. The survey also incorporates expert analysis from 18 interviews with CEOs and other top executives from leading companies in insurance worldwide.
Key findings from the global insurance study include:
- Europeans are the most globalized by a significant margin. Asian insurers are the most ambitious, while North American insurers are balancing globalization with risk. However, for most, the realisation of a truly global operation is a long way off.
- Organic growth is favoured over acquisition as a low-risk model that maximises control over corporate identity.
- Regional hubs are preferred to a centralised operation controlled from a single HQ as they enable a local approach crucial for globalisation, while still benefiting from the economics of shared operations.
- Shared back office operations, such as Financial Management, are becoming common global operations, while client-facing operations do better locally.
- Home office/local office communication is a crucial factor in successful global operations, supported by management processes, IT and regulatory consistency.
- The diversity of a truly global operation is highly regarded by the capital markets and rating agencies.
To hear the complete results of this survey, register today for the Global Financial Leadership Forum 2007 or contact Linda Cunningham at 202 624 2405.