A growing number of insurers may soon find themselves in a predicament similar to that facing the proverbial group of hunters who are being pursued by a hungry bear. Rather than having to outrun the predator to survive, carriers might just have to stay ahead of competitors that are slower to adapt to evolving market conditions.
However, to accomplish this, companies will likely need to upgrade internal systems and become more cost-efficient so they can maintain, and perhaps even increase profitability despite looming threats to their income streams. That was my chief takeaway from the recent Property-Casualty Insurance Joint Industry Forum, attended by many top executives and association leaders, which I found to be a rather somber annual family reunion this time around.
Part of the problem is that the "firm" property-casualty market of the past few years (in which prices were rising by small percentages but coverage was rarely difficult to find) has begun to decay, as capital builds faster than the demand for coverage.
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