A large and growing set of challenges is facing the insurance industry. New risks and threats are emerging, while others are becoming more complex. Loss frequency and severity continue to plague P&C insurers’ balance sheets and drive rate increases. At the same time, many policyholders are unaware of their true risks and underinsuring of their exposures. New regulations that create liabilities for employee benefits producers are going unrecognized by P&C producers. These are just a few of the challenges the industry has on its road ahead. Solving these will require the insurance industry to think differently about how it deploys its resources.
Risks today are similar to the tax code; they’re becoming more complex and harder to understand. Addressing ongoing and emerging risks requires a deeper analysis and…