The impact of social media, recovery of Western economies, global ageing and interventionist regulation are identified by the ABI as challenges for the industry.
At its biennial conference today (9 July), the ABI published a report examining the extent to which the insurance industry can play a greater role in meeting the challenges of a changing world.
Otto Thoresen, director general of the ABI, said: “This report is ABI ‘thinking out loud’ about what impact national and global trends have on our customers, the economy and the industry.
“Our report marks the start of a debate in the industry and with other stakeholders about what action is needed to cope with, and take advantage of, the huge changes we all face.
“The rules of day-to-day life are being rewritten, and insurance has a key role to play in tackling many of the issues that matter for society.
“Insurance provides cover against risks inherent in all aspects of life – from safeguarding our homes, and businesses, protecting against illness and death, to providing income in retirement.
“Our recently agreed Flood Re deal with the government is an example of how insurers, working with government, can develop solutions to the challenges we face.
“In other areas, such as pensions, we need a new ‘social contract’ with government to reflect the shifting boundaries between state and private provision.”
On data protection, the ABI report revealed nearly three-quarters of people surveyed online (72 per cent) feel adequate protection of personal data is important or extremely important.
Six in 10 people currently participating in social media would be unhappy about their personal information which they provide through social media being used by companies to personalise services marketed to them.