1. Embracing Digital Finance Transformation
The integration of AI, automation, and advanced analytics is reshaping finance operations. CFOs must lead the charge in:
- Modernising legacy systems to enable real-time reporting and forecasting.
- Leveraging predictive analytics for underwriting and claims optimisation.
- Enhancing data governance to ensure compliance and trust in financial reporting.
2. Regulatory Agility
With the FCA and PRA continuing to refine their frameworks, staying ahead of regulatory change is critical. Key areas of focus include:
- IFRS 17 implementation maturity
- Operational resilience requirements
- Climate-related financial disclosures (TCFD/ISSB)
- CFOs must ensure their teams are not only compliant but also agile enough to adapt to future shifts.
3. ESG and Sustainable Finance
Environmental, Social, and Governance (ESG) considerations are now central to capital allocation and risk management. CFOs are expected to:
- Integrate ESG metrics into financial planning
- Support green investment strategies
- Report transparently on sustainability performance
- This is not just about compliance—it’s about long-term value creation.
4. Talent and Culture in Finance
The finance function is becoming more cross-functional and tech-enabled. CFOs must:
- Attract and retain talent with digital and analytical skills
- Foster a culture of innovation and continuous learning
- Champion diversity and inclusion across finance teams
5. Strategic Capital Allocation
In a low-growth, high-volatility environment, capital efficiency is paramount. CFOs should:
- Reassess capital models and reinsurance strategies
- Optimise investment portfolios for resilience
- Align capital deployment with strategic growth areas
Final Thoughts
The CFO of 2025 is a catalyst for change—balancing financial stewardship with strategic foresight. For UK insurers, this means navigating complexity with clarity, embracing innovation with discipline, and leading with purpose.
