In the presentations I give around the country, I usually provide an update on the auto insurance industry. We're in an interesting cycle to say the least.

The recession caused customers to drop coverage, and we've reached an uninsured motorist rate of over 14 percent, according to the Insurance Information Institute. LAE is creeping upward and we're seeing loss frequency edging up, too, despite a combination of high fuel prices and the recession. The larger problem, however, remains the customer base.

Our biggest customer base is the baby boomer generation. That generation is aging, and there is not a new incoming customer base of teenagers or immigrants that will be able to match it. For now, the baby boomers are in their safest driving and prime coverage buying years. But as this demographic ages, accident rates will increase. The only wild card here is the question of whether advancements in accident avoidance—like blind spot warnings and backup cameras—will mitigate the increase. But the bottom line is that businesses need to grow their customer base, and the auto insurance customer base has no “organic” growth potential.