Filed Under:Carrier Innovations, Information Security

A Six-pack of Problems

The U.S. economy is always top of mind for property/casualty insurers—particularly when it remains sluggish for two or more years—but there are other issues for carriers to address if they want 2011 to be successful.

Ernst & Young, in its 2011 outlook, lists six key issues for insurers to address. Leading the way for IT leaders is predictive analytics.

Votta and E&Y can’t predict the date when the market will finally re-harden, but he feels it is imperative for carriers to understand what needs to happen before there is a change.

“There’s over-capacity, yet the underwriting margins aren’t where they were three or four years ago,” he says. “Investment income results have not been where they were historically. There are a lot of signs where historically the market has turned in terms of how thin margins can get and how low cash flow can go. But I think what is holding back any turn is the amount of capital that is sitting, particularly in the P&C industry. [Capital] has to be less available for there to be any market change in pricing.”

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