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Survey: Majority of Insurance Execs Say Business Conditions Have Improved

A majority of insurance executives say business conditions have improved for their company, but 64 percent predict that the industry will not fully recover until...
October 13, 2010

A majority of insurance executives say business conditions have improved for their company, but 64 percent predict that the industry will not fully recover until 2012 or later, according to a survey by KPMG. The results "reflect an expectation that many of the challenges insurance executives have faced in terms of financial performance over these past two years will likely persist," said KPMG's Scott Marcello.

When asked to identify the most significant challenges they face in the next three to five years, 44 percent of respondents cited the risk associated with adequately pricing insurance products (referred to as pricing risk) to be the most significant, followed by regulatory/market conduct risk. Interestingly, only nine percent of respondents indicated credit risk, which is a significant drop from 23 percent in 2009 and 32 percent in 2008. "There are clear concerns surrounding pricing in this soft P&C insurance market," added Marcello. "And, there appear to be indications that this market will persist over the nearer-term."

Click here to read KPMG Survey Shows Improved Outlook Amid Concerns (Kansas City Star 10/7/10)

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