The incumbent firms are responding to these challenges by adopting various strategies, which include making investments in FinTech companies and partnering with them. They are also enhancing their in-house capabilities to adapt to the new realities. 21. A wave of changes brought in by FinTech have had a positive  impact in terms of enhancing inclusion and further penetration of financial services.
In addition, the increase in terrorism activities poses a huge challenge for the insurance industry. The recent bombings in London and Scotland are a worry. As a result, the hardening of world premiums is bound to affect the domestic insurance markets. The third challenge is the introduction of new international financial reporting standards.