Potentially record-setting profits this year for insurers might lead to a slew of problems down the road if it prompts “suicidal” competition and eroding public perception, a top Lloyd's official warned.
Indeed, regulatory reluctance to permit profitable rates, along with sluggish premium growth bode ill for the future of the industry in coming years, said Lloyd's America President Wendy Baker.
Rising surplus could result in an oversupply that will put further pressure on the industry's bottom line, Ms. Baker said during the 18th Annual Executive Conference for the Property-Casualty Industry. “We have to return to basics, which include not underwriting for market share, recognizing that terms and conditions can be just as important as pricing, and sticking to what you know best,” she said.
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