When someone asks you what you do and you respond, “I'm in theinsurance business,” do you think they have any idea what you mean?This is a confusing industry since there are so many aspects toit—from the different lines of business to the different wayspolicies are sold, to the different tasks within any of thosespecific fields.

This may be a bit self-serving, but those differences are onereason why PropertyCasualty360.com has been so successful over thelast two years as we present stories from the many differentvantage points in insurance, at least on the property &casualty side.

I bring this up because currently on our website is a slideshowfeaturing some interesting opinions on what 2013 holds for agents and brokers. One of those slidesholds the views of David Bidmead, the U.S. CEO of Marsh Inc. Hesays:

“The insurance industry is a reflection of the world generally.For me, the new normal—something that we'll all need to adjustto—is living in a state of perpetual change where there is nosteady state. The insurance industry has historically operated onthe perception that the past is a reliable indicator of the future,and yet we have suffered natural catastrophes that are described as“1-in-500-year events” occurring every year at a time when theglobal economy sits on a knife's edge and companies around theworld are trying to do more with less. In this environment, theability to lead and successfully manage change is going to becomean increasingly notable difference and a competitivedifferentiator.”

Bidmead's take on the future comes from a brokerage perspective,but addresses the challenges insurance IT leaders face every day.We do live in a world of perpetual change and sometimes the onlypeople who can translate those changes are the IT leaders. It isnot enough for them to understand it themselves, though, they mustcommunicate those changes as well as offer plans for the enterpriseto address those changes.

Bidmead also points out that challenge insurance faces inmanaging events that go far beyond what the predictive models havelaid out for underwriters in terms of coverage. Models are nevergoing to predict every storm that comes our way, but they do offerguideposts on how insurers need to address possibilities.

Knowledge is the key and that can only come from the datainsurers have compiled over decades of doing business. It isimpossible to “manage change” without information. We are remindedof this every day when we see bad decisions made and then followedby shoulder shrugs that indicate no one knew any better.

Insurance data won't tell you everything you need to know aboutcatastrophes and coverages, but reasoned guesses beat shouldershrugs every day of the week.