In a new report, "Is the Crisis Easing? Update on Q2 Insurance Industry Expectations and Strategies," Celent surveyed insurers and vendors to ascertain their views of the credit crunch. The survey also examined the available levers for any business--budgets, staffing levels, and strategies--and how these are being used.
Celent reports respondents are confident their companies are doing the right things to provide jobs, compete effectively, deliver on strategies, and succeed in both the long and short term.
"There is one area of exception," notes Catherine Stagg-Macey, senior insurance analyst and coauthor of the report. "Respondents were slightly less confident this quarter about their company being able to provide a job."
"Not surprisingly, insurers have made more progress in implementing tactical responses," says Craig Weber, senior vice president of Celent's insurance group and coauthor of the report. "Around 80 percent already have frozen or are in the process of freezing discretionary spending and travel. Almost two-thirds have cut staff salaries or are in the process of cutting them."
Stagg-Macey feels an interesting discovery in the results was the feedback on strategic responses. "For example, there are a large number of insurers considering or launching a new product or a new channel," she says. "Streamlining of processes is the top area of focus, and there is a great deal of divestment of assets."
Many insurers and vendors seem to have positioned their companies to ride out the storm, according to Weber. Some see opportunity in this crisis, and most have made significant changes to their operations. This report is the second in a series that will track insurers' responses to the crisis.
For a copy of the full report go to www.celent.com.
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