Nearly half of global CEOs in the insurance field predict more joint ventures or strategic alliances over the next year, according to survey results released yesterday.

And two thirds of business chiefs believe that new tie-ups between firms offered the best chance to gain access to new customers — a much higher proportion than seen among CEOs in other sectors.

The annual global survey of CEOs, carried out by financial services firm PwC, added that 59 per cent of CEOs surveyed in insurance and reinsurance were more optimistic about business growth than they were three years ago.

But 61 per cent said they saw more threats, while 69 per cent were concerned about disruption from changes to distribution channels.

And nearly three-quarters (71 per cent) said they were worried about the limited availability of key skills — seen as a major driver for expansion.

The same percentage saw a diverse workforce as “a key way to enhance business performance, innovation and customer satisfaction”.

Around 75 per cent of those surveyed said they already had a strategy to push talent and diversity — or had plans to adopt one.

PwC Bermuda managing director of insurance Matthew Britten said: “The transformation of the insurance and reinsurance marketplace is accelerating, both in Bermuda and globally, creating opportunities for some and threats for others.

“With mounting commoditisation, intensifying price competition, abundance of traditional and alternative capital and difficulties in conveying the true value of coverage provided, slow adaptation is not a viable option.”

Mr Britten added: “Insurers and reinsurers need to continue to challenge and evolve their business models to move more quickly in developing necessary competitive capabilities if they want to sustain growth and keep pace with market expectations.”

The views came in the 18th PwC annual survey, which interviewed 80 insurance industry CEOs in 37 countries and a total of 1,322 business leaders in 77 countries including other industries.

More than 90 per cent of insurance chiefs — more than in any other sector — cited over-regulation as a major threat, against the backdrop of the EU Solvency II agreement, which will come into force in less than a year and other regional and local changes to regulation on the horizon.

A total of 30 per cent said that new alliances were an opportunity to boost innovation and gain access to new and emerging technologies.

But only ten per cent said they would look to start-ups as partners, even though these link-ups could provide access to cutting edge technology and ideas.

But the survey also found that, while 90 per cent of insurance CEOs said digital technology could improve their data analytics, 70 per cent of them — higher than all but one industry — saw the speed of technological change as a threat to their profitability.

David Law, PwC’s global insurance leader, said: “The fact people are living longer and have more wealth to protect presents insurers with an opportunity.

“However, challenges include mounting commoditisation and the need to have lower cost digital distribution and advanced digital profiling to respond more effectively to customer demands.”