Risk, revenue, regulation, and retirement will be the top drivers of change for insurers in 2009, according to research and advisory firm TowerGroup.

The firm said that these four areas will test insurers' abilities to react to a marketplace that is being assaulted by crises. Specifically, TowerGroup said that risk and regulation will be at the forefront as insurance carriers focus on initiatives designed to optimize risk management and meet new regulatory mandates. Increased costs and decreased revenues will lead to further industry consolidation and redistribution of assets. Lastly, as a large number of experienced insurance workers reach retirement, the strain on insurers will increase as decades of knowledge departs.

Proper implementation of technology by insurers has always been viewed as essential by TowerGroup, and this study reflects that mentality. In claims, this can involve adopting technologies such as predictive analytics, which in a nutshell can help guide less experienced adjusters into making sound judgments by using past decisions as a guide. TowerGroup strengthened this call to action by stating that carriers that fail to implement predictive technology will see "significant deterioration in their results as well as plummeting loss of competitive position."