Key Highlights

External influencers: mixed macroeconomic signals

• Uptick in global growth and rebound in employment levels, if
  sustained, will have favorable implications for the sector.
• As central banks turn cautious, bond yield improvements are likely to slow in the near term, implying limited investment yield upside for insurers.

Sector trends: hurricanes to set course

• Supported by a strong bull run, global insurance stocks continued
  to rise as several large insurers saw improved investment and
  underwriting results.
• Pick-up in long-term buy recommendations for U.K. and E.U. insurers reflect improved analyst expectations.
• Natural catastrophe (NatCat) losses: Active hurricane season is
  expected to halt the relatively benign period of losses and limit
  further pricing weakness that has persisted after 2012.

See also: Insurance Technology Trends in ’17, Beyond  

Tech disruption: blockchain rising

• Addressing the evolving nature of risk through innovation is a key
  imperative for insurers.
• Blockchain has now progressed beyond pilot stage, with early
  adopters looking to gain significant advantages.
• EY has taken a strong lead in helping insurers create a blockchain-based new-age information infrastructure.

Regulatory landscape: insurers prepare for impact

• Insurers need to initiate implementation plans to
  effectively address the changes introduced by the new accounting regulations (including IFRS17 Insurance Contracts).
• General Data Protection Regulation (May 2018): With more than
  half of the two-year post-adoption grace period now over,
  insurers will have to act fast to address the impending challenges.

You can find the full EY report here.