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Today’s insurers are exposed to multiple risks, from financial risks, such as shifting interest rates, changing costs and sources of capital, and increasing claims levels due to consecutive years of significant inflation, to an array of nonfinancial risks, including extreme climate events and generative AI (gen AI). This uncertain environment has spurred leaders to be more cautious but also more innovative in a way that still supports a path to…

Some technologies are so compelling that they quickly take on a life of their own. Generative AI (gen AI) made the leap from the laboratory to the mainstream in late 2022, when Open AI launched a public beta of its ChatGPT service. Within two months, it had more than 100 million users, making it the fastest-growing product in human history. By the first quarter of 2023, big technology companies were…

Consumers and businesses looking forward to the fillip of an interest rate cut may have to wait a little longer. Among our surveyed economies, only Brazil’s Monetary Policy Committee (Copom) cut its policy rate in May—but by just 0.25 percentage points, taking the Selic rate to 10.50%.Hopes of imminent interest rate reductions among the major economies are receding (Exhibit 1) except perhaps in the eurozone, where expectations of a June…

Digitalization of the financial sector has brought significant benefits but has also exposed businesses to rising technology risks, including cyberattacks, system outages, and third-party information and communications technology (ICT) failures. To ensure financial institutions (FIs) remain resilient in the face of these threats, the European Union’s Digital Operational Resilience Act (DORA) sets out detailed requirements for EU-based FIs to protect their key business processes (see sidebar “DORA’s scope”). While DORA…

To explore how generative AI (gen AI) could transform the future of work globally, and in Singapore particularly, McKinsey partner Sanjna Parasrampuria, an expert in data, artificial intelligence and generative AI,  talked to Terence Chia, assistant chief executive of the Infocomm Media Development Authority (IMDA) of Singapore, and to Kathryn Kuhn, an alumnus of McKinsey’s Digital Practice. The conversation led to the conclusion that collaboration is vital to ensure that…

At a glance Cardiovascular disease (CVD) is the leading cause of death for women. Cardiovascular conditions in the United States make up at least a third of the women’s health gap because of inequities between women and men in care delivery, efficacy, and data availability. Addressing heart health at every life stage can improve a woman’s quality of life and overall health. It could lead to at least 1.6 million…

Demographic, regional, and technological shifts all influence the current story of global productivity. On this episode of The McKinsey Podcast, McKinsey senior partners Chris Bradley and Olivia White join editorial director Roberta Fusaro to discuss how best to measure productivity, what’s behind reduced productivity numbers, and what can be done to ramp up productivity rates again.In our second segment, McKinsey senior partner Tania Holt explores the challenge that Europe faces in filling many…

Following a record showing in 2022, the global banking sector continued to exceed expectations during 2023. Global return on tangible equity reached 13 percent in 2023, its highest level since the 2008 financial crisis. Meanwhile, the worldwide Tier 1 ratio hit a ten-year high of 13.4 percent, and net interest margins rose to 2.4 percent, snapping a decade-long contraction. Despite the remarkable overall performance of global banking, several challenges that…