PricewaterhouseCoopers has reported resounding optimism among insurer chief executives despite the poor economic forecasts.
Only 15% of insurance chief executives believed economic conditions would improve in the next twelve months yet 90% were optimistic about revenue in the year ahead.
Rebuilding public trust and searching for talent are the biggest concerns for insurance chief executive regarding growth prospects.
Less than 30% saw filling talent gaps as a key investment priority and three-quarters said sustaining reward models that matched peer organisations to retain talent was a worry; 60% were concerned about the consequential tax burden.
More than 80% of insurance leaders believed risk should be factored into performance evaluation and pay, and a third have changed how executive pay is set in response to shareholder and public pressure.
There is a higher proportion of insurance chief executives (55%) worried about lack of trust in the industry compared to 54% of banks and 44% of asset managers.
Jonathan Howe, UK insurance leader at PwC, said: "The insurance industry is facing significant challenges and opportunities.
"Trajectories of growth in different parts of the world are diverging; customers are demanding more transparent and accessible products; technology is revolutionising risk analysis and customer profiling; and, the speed of change is putting existing business models at risk.
"The insurers that come out on top will focus keenly on the customer and have a superior capacity for innovation and reinvention. They'll be able to anticipate change and how it affects them, as well as be nimble enough to quickly capitalise on emerging opportunities."
According to PwC, ongoing success is likely to require a cultural shift as insurers seek to rebuild public trust.
More than 60% of survey respondents are strengthening culture of ethical behaviour including defining right behaviours and reinforcing mechanisms such as changes in hiring practices, organisational design, development programs, performance management, and rewards.
Existing insurance business models are at risk with customer demand for more transparent and accessible products, diverging trajectories of growth in different parts of the world, rapidly changing technology in risk analysis and customer profiling and heightened threat of new entrants picking off profitable business.
PwC said: " The insurers that adapt effectively will focus keenly on the customer and have a superior capacity for innovation and reinvention.
"They'll also be able to anticipate - not just react to - change, and be nimble enough to quickly capitalize on emerging opportunities. Businesses that fail to respond could find themselves priced out of the market, falling short of customer expectations, and under threat from aggressive new entrants."
Nearly a quarter of insurance leaders expected the economy to decline; recession in the US and falling growth in China are seen as more likely and damaging scenarios than a break-up of the Eurozone.
Prospects for growth in Western Europe are still seen as limited compared to other regions.
