THE WHITE HOUSE, CONGRESS & OUR INDUSTRY'S NEW YEAR?

At a regular weekly meeting with our affiliates, including: BenefitPlace, Vesta Worksite and Vesta h&l , we reviewed the potential impact of various proposals in both the Health and P&C Insurance Markets.  As happens whenever these topics are discussed, the conversations revolved around uncertainty, confusion and some degree of paranoia.

While the White House and Congress have proposed many threats to the Financial Services, Banking, and Insurance Industries, there does not seem to be a consensus of opinion or strong leadership.

A study by Deloitte seemed to wrap-up our main themes for the P&C industry:  The study found that the "...insurance industry has had a lower competitive intensity because of regulatory and capital requirements" and that "increased competition from outside the industry and other developments will impact competition in the future". 

In addition, the Deloitte study went on to note that customers were becoming less loyal to brands and that "transparency in pricing, service and features" would become even more important as the Gen X and Gen Y become more influential.

While all of the above certainly have a macro-impact, it was agreed that the most direct hits to P&C revenues and profit were caused by the economy!  Quite simply, insureds are working with limited resources and are tightening budgets.  In this economy, all lines are effected!

A major challenge for the P&C Industry is maintaining revenues and service without downsizing staff while working through slow recovery.

Please share your thoughts with our Community and Have a Great Week!