The current challenging business environment is requiring insurance companies to rethink the fundamentals of their business. Insurance company balance sheets have been battered by the combined impact of increased claims and benefit costs, deteriorating asset quality and low investment returns.

Most lines of business are seeing the costs for claims and benefits growing due to increased liability settlements, rising medical costs and other losses. Weak equity prices and low interest rates have made it more difficult to match assets with liabilities from products offering guaranteed benefits.

Responding to these financial realities will require a return to basics in strategy and management approaches. Enhancing operational capabilities will also be key. Firms need to reduce underwriting losses by exercising more discipline and using latest technology tools to quantify risks more accurately. Automation and other cost-reduction initiatives have become a top priority. Assigning the appropriate amount of risk-adjusted capital to each line of business will be essential in order to identify risks and support decision making.

Meanwhile, legislative and regulatory developments create additional challenges. Regulatory bodies in the European Union are upgrading capital-adequacy standards. The movement to unify accounting standards and implement accounting standards for insurance products is gaining steam.

Deloitte & Touche has seen how critical issues have brought dramatic changes to the insurance industry over the years. As one of the world leaders in providing professional services to this industry, we work with clients to address a range of critical issues prompted by globalization, advances in technology, new competitors and the changing demands of customers.

We have therefore developed the following range of services that we offer to Cyprus insurance companies to help them address the challenges in their industry:

• Assurance & advisory
• Tax
• Mergers and acquisitions
• Due diligence
• Management consulting
• Regulatory Consulting
• Business plan and application for licence
• Internal audit

Deloitte & Touche’s deep understanding of the industry and business issues pertinent to individual clients across the sector, ensures an excellence of service and a focus on value creation unequalled in the market place.