The insurance industry can expect some consolidation going forward, as big companies get bigger and weaker companies struggle to survive the current economic challenges, an expert said today.
Speaking during an Ernst & Young teleconference, "Financial Crisis And The Insurance Industry," Robert W. Stein, global director of Actuarial Services, Ernst & Young LLP, said weaker companies will likely not survive going forward, and that will lead to increased consolidation in the industry.
Mr. Stein warned, "There are issues on the banking side as to whether the rise of mega institutions is always a good thing, but it's quite clear that we will see the big getting bigger, and I think with that will come a little bit of increase in complexity and risk profile–perhaps undesired, but nonetheless part of the 'getting bigger' situation."
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