How do you combat the worsened business conditions for U.S. insurance executives?
First, a recognition that poor conditions
exist, and then the creation of new strategies to overcome the adverse conditions. The risk of adequately pricing insurance products over the next three to five years is of paramount concern.
As more insurance brokers focus on organic growth for the middle market, insureds competition will continue to grow. Property and casualty policies and/or employee benefits that serve small to mid-sized businesses will require a specific expertise to be a low cost provider.
Insurers looking to drive revenue growth will focus their technology
expenditures in this area. More regional insurance companies will be created writing specific niche insurance products. Insurers having significant amounts of capital will look to expand by acquisition in these growth areas.
Expect to see more developments in the captive insurance company
for the small to mid-sized business.