With the property and casualty industry already mired in a sustained soft marketplace, the financial crisis has placed even more demands on insurance carriers to grow their top line.
While strong competition for market share has become even more intense, insurers remain mindful that growing their premium volumes in an indiscriminate manner is hardly the solution to the challenges that they face in their quest for profitability.
The soft marketplace, of course, creates downward pressures on premium pricing, so the cycle of growing revenues under these conditions inevitably causes poor financial results. However, many insurance carriers are turning to a managing general agent as a way of hedging their risk-taking efforts on a particular product line in the most cost-effective manner.
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