RISK: CFOs focus on financial strength

This stems from a fear of reserve releases drying up

A company’s financial strength is the most important factor when CFOs (61 percent) decide how to spend money, Towers Watson’s P&C Insurance CFO Survey reports. This trumps taking advantage of opportunistic ventures came  (30 percent), and market demand (26 percent).

This focus on financial strength stems from a fear of reserve releases drying up. 70 percent of respondents expect the industry to exhaust redundancies within the next three years. Many other respondents are concerned about unexpected cost increases and changes in legislature.

Nevertheless, CFOs’ focus on finances “does not come at the expense of growth and innovation,” Alejandra Nolibos, director in Towers Watson’s P&C business, said in a statement.

Half of respondents plan on investing in analytics, data and other technology within the next two years.

Copyright © 2017 Transcontinental Media G.P.
Transcontinental Media G.P.