One of the plagues that a typical buyer of insurance faces is the uncertainty of tomorrow’s economy and this will not turn out positive for the property/casualty insurance industry, warn experts.
According to Ernst & Young, a global tax and business advisory firm, low premium growth is still anticipated to pursue this 2012; this would severely affect the profitability of insurers and probably result in a fifth consecutive year of negative performance.
In response to this, companies have no other choice than to measure risk in modernized ways. This has the potential of revolutionizing capital and risk management strategies of insurers globally.
David Hollander, Advisory Leader of Global Insurance, one of Ernst & Young’s organizations, believes that “insurers that employ flexible strategic responses in terms of capital and resources are best positioned to maximize market conditions.”
Execute versatile approaches to conduct risky conditions.
Insurers’ operational capabilities, infrastructure and corporate culture must be able to adjust depending on the situation in order to assure spry performance without losing accountability.
Predict, Comprehend, and Handle the impact of prospective regulations.
Insurers must have utter assurance of the impacts of new regulations and accounting modifications before implementing them. Comprehend and act upon changing insurance buying behaviors.
Insurer’s must study their customers and make the appropriate negotiations to satisfy the needs of both sides of the deal.
Aggravate investments in core systems to reinforce growth and profitability.
Further investments are required to outrun competitors, heightened customer expectations and increasing costs to maintain and improve profitability.
Hire business analytics to solve troublesome top-line growth conditions.
Business analysts must actively scour the market to identify certain changes in customer behavior and create models that would calculate the best way to profit from the said changes.
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