P/C Insurers Must Improve Underwriting Amid Competitive Pressures, Potential and Pitfalls in Developing and Implementing InsurTech, Homeowners Insurance Shines While Personal Auto Struggles, Small, Specialty Insurer Hiring Plans Surpass Larger Peers, How to Retain a Multigenerational Workforce
Insurance Journal: P/C Insurers Must Improve Underwriting Amid Competitive Pressures: Fitch
Property/casualty insurers in North America saw their operating income decline by double digits in the first half of 2016, as investment income plunged and catastrophe losses rose.
Fitch Ratings looked at 44 insurers and reinsurers that are either publicly traded or report GAAP consolidated results, determining that their aggregate operating earnings dropped by 10.8 percent over the period, landing at $21.6 billion.
“Maintaining or improving underwriting performance will be the key to generating adequate returns on capital going forward,” Christopher Grimes, director at Fitch, said in prepared remarks. Read the full article now…
PC360: Maximize the Potential and Avoid Pitfalls in Developing and Implementing InsurTech
Insurance companies are facing a once-in-a-generation series of changes to their industry.
The demographic passing of the torch from baby boomers to Generation X and millennials is well underway and will continue to accelerate. In addition, trends in policy sales, premiums and ownership of insurance products have made the need to innovate more urgent and less discretionary.
Winners in the industry will be those that develop products, tools for analysis and distribution methods that fit in the current marketplace and appeal to a different generation of consumers.
Technology-enabled innovations in the insurance industry — or “InsurTech” — present both intriguing possibilities and risks for potential acquirers of these technologies. Here are some trends in insurtech and some things that insurance companies should consider in evaluating the possibilities and mitigating the risks. Read the full article now…
Carrier Management: Homeowners Insurance Shines While Personal Auto Struggles: Fitch
While the U.S. personal auto insurance industry continues to be a sick patient, homeowners coverage is a significant bright spot, according to Fitch Ratings’ latest report.
Private passenger auto insurance saw its industry combined ratio grow to 104.6 in 2015, up from six consecutive years of results that ranged between 101 and 102. The U.S. personal auto combined ratio for the first six months of 2016 was 98.5, versus 97.4 over the same period in the previous year.
Homeowners liability, meanwhile, hovered at just under 92 for 2015, compared to 92.5 in 2014, 90.3 in 2013, 104.1 in 2012 and 122.3 in 2011. For the first six months of 2016, higher catastrophe losses drove the homeowners combined ratio up to 94.7, compared to 87 in H1 2015. Read the full article now…
Carrier Management: Small, Specialty Insurer Hiring Plans Surpass Larger Peers: Labor Study
Small insurers are expecting to do most of the hiring in the industry, according to a new survey, which also highlights the high demand for niche specialty commercial lines underwriters and claims professionals.
Just over two-thirds of companies surveyed plan to increase staff during the next 12 months—indicated by 69 percent of respondents in the property/casualty segment and 73 percent in the P/C commercial lines category—according to results of the Semi-Annual U.S. Insurance Labor Study conducted by The Jacobson Group and Ward Group, a part of Aon Hewitt.
The 73 percent of commercial lines insurers who said they expect to increase staff during the next 12 months exceeds levels recorded in prior surveys. Reporting on a January 2016 survey earlier this year, Jacobson and Ward revealed that 61 percent of commercial lines companies expected more new hires during the upcoming year; in July 2015, the figure was 63 percent. Read the full article now…
PC360: 4 Keys to Retaining a Multigenerational Workforce
With many experts predicting that the insurance industry will soon face a significant talent shortage as thousands of baby boomers retire over the next few years, finding ways to solidify their current workforces while creating opportunities for long-term success has become an increasingly important issue for many firms.
As the demographics of the industry change, so do the expectations of the workforce. What is important to older, more experienced employees like Generation X, isn’t necessarily what’s important to younger millennial employees.
Diversity in the workforce
With so much diversity in the workforce, figuring out how to create a work environment that appeals to all groups becomes a difficult balancing act. Some companies remain too firmly entrenched in maintaining the status quo to keep their more experienced employees happy. This makes them appear staid and old-fashioned to younger employees. Read the full article now…