SEOUL, South Korea — As the business environment changes, insurers need to make significant adjustments to their strategies in order to succeed, said David Law, global insurance leader at PricewaterhouseCoopers L.L.P. in London.

Often, insurers need to implement cultural change programs to overhaul their companies, but achieving such change is difficult, he said.

Several factors are driving changes in the insurance sector, Mr. Law said Tuesday during a session at the International Insurance Society's annual seminar in Seoul, South Korea.

Those factors include social dynamics, where social media is becoming a dominant communication vehicle for young people; technology, as it is used to better understand risks and improve pricing; environmental issues; the current economy and low interest rates; and political agendas, where officials in many countries want to become more involved in regulation, he said.

In addition, insurers' customers are looking at insurance from different perspectives. Rather than simply looking for the best price, they are looking for ways to improve their risk profiles to obtain better pricing. For example, they may be prepared to install telematics in their cars to help them improve their driving, which will lead to lower insurance premiums, Mr. Law said.

Those trends have a knock-on effect with insurers, he said. For example, “people are looking at whether you can make an (auto insurance) claim without having any human interaction through the use of telematics and voice recognition software.”

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As a result, insurers need to make better use of data to target customers and determine what they can profitably sell to them, Mr. Law said.

That information also can help insurers become more customer-centric, Mr. Law said.

“There's a real difference between successfully making a sale and being customer-centric,” he said. For example, health insurers can tie health coverage in with gym memberships to help consumers achieve their goal of a healthier lifestyle rather than just selling them insurance coverage.

But changing insurance company cultures to take advantage of the changes is tough, Mr. Law said. Insurance executives need to ensure that they have a clear purpose and vision; focus on “moments that matter,” such as when a claim is filed; lead from the top and act consistently; invest in the change programs; and measure feedback and make appropriate adjustments.

Recognizing how business cultures need to change and acting to make the changes can also drive merger and acquisition strategies, he said. For example, insurers may look to buy boutique firms that specialize in analytics.

“Deals don't need to be large to be transformational,” Mr. Law said.