“Executives more clearly understand what a tough environment they are in and what it demands in terms of attention,” says Laura Hay, national leader of KPMG LLP's insurance practice, in a statement. “It isn't that they aren't also focused on growth, but in an environment of slow growth and tough pricing, insurers must focus on value creation through efficiency, innovation and client centricity.”

In a positive bit of news, 70 percent of insurance executives say their companies have cash on their balance sheets, and about half will be spending more. The most popular allocation of capital will be devoted to information technology (IT), with 64 percent of respondents pursuing this investment, up from 49 percent in 2011.

The three areas of technology expected to be better-funded in the next two years are IT infrastructure, customer growth or service, and data warehouses, respectively.

Executives also plan to be more active in pursuing mergers and acquisitions, with nearly half of the survey's respondents saying their companies will likely be involved as a buyer in a transaction by 2014.

Hay adds, “What we're seeing are firms focusing on their core strengths, divesting of certain assets or markets that don't fit those strengths and more aggressive M&A strategies.”

Executives are not so bright about the economy and the impact of federal oversight on business growth. About half of respondents say regulatory and legislative pressure would present the most significant short-term growth barrier, a 6 percent increase from last year.

Seventy percent of insurance executives expect the economy to recover by 2014 or later, and in the meantime, only a quarter of companies will focus on workforce recruiting. Twenty-eight percent of respondents indicate that their companies may never return to pre-recession headcounts, although 16 percent said that the lack of a qualified workforce is a significant barrier to growth.