Insurance companies in North America cite their most urgent challenges as product innovation and improving the assessment and pricing of risks. In the face of these challenges, North American insurers recognize the need for change and are actively repositioning their investment portfolios for a new environment. Growth opportunities in this region include improving the cost effectiveness of strategies within their investment portfolio, enhancing data and analytics capabilities, and exploring the viability of outsourcing.

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North American Respondents
by Country
2013 State Street Insurance Survey
• This survey, sponsored by State Street and conducted by the Economist Intelligence Unit, examines
the current state and future outlook for the global insurance industry
• Fielded during April 2013, the survey encompassed 307 senior insurance executives globally, of
which 81 were based in North America
About the Research
1
North American Respondents
by Industry Sub-Sector
62%11%
15%
2%
10%
Life
Health
P&C
Reinsurance
Diversified77%
21%
2%
US
Canada
Mexico

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Key Challenges Facing Insurers in North America
Managing
Risk
Improving the assessment
and pricing of risks
Balancing liquidity
and reserve adequacy
Regulation
and
Compliance
Adapting to evolving
insurance regulations
Ensuring transparency of
business policies and processes
Driving
Innovation
Bringing new, innovative
products to market quickly
Adapting distribution to
changing demographics
Finding New
Sources of
Value
Effectively allocating capital to the
most business-critical priorities
Investing in more
complex investment types
Optimizing
Business
Strategy
Converting fixed costs
to variable costs
Using data more effectively
across our company
51%
65%
62%
46%
51%
62%
52%
64%
57%
54%
42%
21%
25%
32%
43%
21%
32%
22%
32%
23%
Minor challenge Major challengeSource: 2013 State Street Insurance Survey,
conducted by The Economist Intelligence Unit 2
Product innovation and improving the assessment and pricing of risks
are the most urgent challenges facing North American insurers

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Improve cost effectiveness of
investment strategies
Increase allocation to alternatives
Improve data and analytics
capabilities
Increase portion of general account
that is managed externally
Outsource middle or back office
functions
62%
58%
51%
38%
25%
25%
33%
20%
20%
28%
Evaluating for action within the next 12 months
Evaluating for longer term action
Evolving Investment Portfolios in North America
Top Five Actions North American Insurers Are Evaluating
for Their Investment Portfolios
Source: 2013 State Street Insurance Survey, conducted by The Economist Intelligence Unit CORP-0760 3
• North American insurers see scope to
improve the cost effectiveness of the
strategies within their investment
portfolio, while also showing strong
appetite for alternative strategies
• Improving data and analytics capabilities
also ranks highly as a priority. Only 10
percent of North American insurers rate
their capabilities in this area as
“excellent”
• Insurers’ business models are adapting
to the new market and regulatory
environment, with many insurers
exploring the viability of outsourcing
North American insurers recognize the need for change and are actively
re-positioning their investment portfolios for a new environment