Category: Predictions

WaPo: Millennials may need to double how much they save for retirement

WaPo: Millennials may need to double how much they save for retirement

Recap: The personal finance website NerdWallet recently estimated that millennials need to save 22 percent of their paychecks to have enough cash in retirement if stock market gains are weaker going forward.

Predictions:

  • A roundup of the figures shows that strategists project the Standard & Poor’s 500-stock index will gain 4 percent on average in 2017 — the lowest expected annual gain for the stock market since 2005
  • If those gloomier outlooks hold true, workers saving for retirement today may not get as much from their portfolios in the long term as previous generations did

Accenture: Smart digital strategies enable insurers to double their earnings

Smart digital strategies enable insurers to double their earnings

Stats Recap:

  • Accenture estimates that insurers, by combining offensive and defensive digital strategies to disrupt key markets, could boost their earnings by 80 percent within the next four years
  • Digitizing their operations they could raise their earnings by an additional 30 percent by 2020
  • Deploying digital technology to improve the customer experience could push up earnings, in four years, by another 20 percent

 

Accenture: Perfect storm threatens to sink insurers’ earnings by nearly 40%

Perfect storm threatens to sink insurers’ earnings by nearly 40%

Recap: Stagnant sales, low interest rates, rising competition, increasing customer expectations, growing regulatory requirements and widespread, technology-driven disruption of key markets, are threatening to significantly erode insurers’ revenues. We estimate that this “perfect storm” of adverse forces could jeopardize 30 to 40 percent of the headline earnings of some traditional insurers by 2020.

The Thesis: These costs could, when combined, reduce an insurer’s EBITDA by 2020 by a staggering 54 percent:

  1. Loss of market share to new entrants
  2. Loss of market share to progressive competitors
  3. Premium reduction
  4. Deteriorating efficiency
  5. Regulatory requirements

Internal Obstacles:

  1. Cumbersome organizations
  2. Lackluster technology
  3. Insufficient customer focus