Insurance buyers are continuing to be affected by fluctuating economic conditions, with unfavorable repercussions on the P&C industry, according to Ernst & Young's Property-Casualty Insurance Industry Outlook.

Low premium growth is expected to continue in 2012 and “increased regulation will force insurance companies to measure risk in new ways, impacting their capital and risk management strategies,” the report stated.

To improve success, Ernst & Young identified five strategies that U.S. P&C companies should explore in 2012:

1. Execute flexible approaches to manage uncertain conditions. Support rapid and well-governed decision making and monitor changes in loss exposures diligently.
2. Anticipate, understand and address the impact of prospective regulations. Consider enhancing the sophistication and deployment of risk management standards and related systems.
3. Comprehend and act upon changing insurance buying behaviors. In terms of tomorrow's customers, their characteristics, buying behaviors and risk profiles will bear little resemblance to those today.
4. Increase investments in core systems to bolster growth and profitability. The push for improvement comes from competitors, heightened customer expectations and, above all, increasing costs to maintain and upgrade systems.
5. Apply business analytics to address difficult top-line growth conditions. These insights can guide strategy development and execution..