Property-Casualty Insurers Continue their Quest for Growth and Underwriting gains in 2013, According to Ernst & Young

NEW YORK, Dec. 18, 2012 /PRNewswire/ -- In spite of the unsure economic setting and restricted investment financial gain opportunities, property-casualty insurers are ready to pursue growth opportunities in 2013 through acquisitions, international international growth and products solutions that focus on new insured risks and coverage, predicts painter & Young in its international Insurance Center U.S. Property-Casualty Outlook.

"Outperforming competitors would force insurers to maximise client gain and persistence by continued to speculate in infrastructure, systems, intellectual capital and technology," says David Netherlander , international Insurance consultatory Leader at painter & Young LLP. "Insurance carriers will seize growth opportunities by up analytical and decision-making capabilities, cross-selling product and mistreatment selling information to extend client retention and encourage business growth. Growth and gain ways ought to be developed across the enterprise and balanced against the risks they will manufacture."

Ernst & Young believes that the subsequent economic process can drive U.S. property-casualty insurance companies' priorities over the approaching months:

--  Invest within the business for the long run, as a response to the tough investment setting. customers more and more look to technology-enabled transformation to enhance the insurance service expertise. they require period solutions that may be delivered through mobile communication and alternative channels. Such expectations square measure tough to realize while not substantial insurance technology upgrades that offer period insurance interaction with customers. Technology may also enhance operational efficiencies, increase underwriting productivity and contribute to higher oversight of the claims method. Early detection of potential adverse claims through associate degreealytical capabilities will sharpen an insurer's competitive edge, whereas yielding value savings in times of economic volatility.

-- inure changes within the regulative setting. In 2013, insurers can confront rising activity from state and regulative authorities that specialize in strengthening insurance economic condition protection systems, like economic condition II, the National Association of Insurance Commissioners' economic condition Modernization Initiative to look at the U.S. insurance capital adequacy system, and therefore the NAIC's Own Risk economic condition Assessment. to organize and address regulative pressures to reinforce risk management, insurers should increase their information management, coverage and analytical resources, and their organizations' ability to integrate risk information across disciplines. this might need extra investment in education and alternative ways. providing a lot of of the economic condition framework continues to be ongoing, insurers ought to be versatile to remain on prime of rising regulative trends, whereas getting ready for escalating information, coverage and governance demands.

-- Exploit opportunities and address challenges with 'Big Data".  Insurers have a chance to integrate and leverage information capabilities across the whole worth chain, from distribution and underwriting to client service and claims. Explosive growth within the abundance and kinds and information, and therefore the speed with that it's delivered, demand a replacement company operative structure and increased governance systems to deal with information security. the first step involves obtaining existing information management capabilities so as to extract significant data and integrate information from multiple sources usually housed in numerous useful areas. Insurers can ought to invest in talent with the ability sets necessary to gather, analyze, bare and manage huge volumes of information.

-- determine growth opportunities and start to execute them. Acquisitions square measure a technique for insurers to diversify and expand by location, product or distribution supply. Premium growth opportunities within the U.S. might derive from insuring new or rising exposures in cyber liability, engineering and energy. Meanwhile, by mistreatment selling information to focus on those customers possibly to shop for multiple insurance policies, insurers will leverage opportunities to expand their businesses and increase retention over the long run. Given the drawbacks to being focused entirely in one country, insurers will profit by turning to rising markets in Asia-Pacific and geographic area, that supply lower insurance penetration rates and potential for economic growth.

The complete Property-Casualty Insurance business 2013 Outlook report are often found at computer network.ey.com/insurance.

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SOURCE painter & Young LLP

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