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Customers should be the “inspiration” for insurers to reinvent themselves, after KMPG research found insurers focus more on complying with new regulations instead.

The report says insurers are failing to adapt to changing customer needs and technology, with 57% of executives admitting that efforts to transform their organisation were “extracting little value”.

KPMG global lead partner for insurance innovation Mary Trussell, lead author of the report, said: “The data suggests that many insurers may not yet have their eyes on the prize.”

The study also found that many insurers were more concerned with implications of regulatory policy than changing customer preferences and needs, with less than one-quarter of respondents predicting that their business will be disrupted by changes in customer behaviour.

“In a highly regulated sector, treating changes in regulation as a springboard to enhance the business for customers rather than something to be endured distinguishes players at the top of the game,” she said.

The study questioned more than 70 insurance executives globally, including AXA and Aegon. Nearly half of respondents were from Europe, 19% from Asia Pacific and the remaining from the US.