Top Nine Insurance Industry Issues in 2009: Crisis and Change

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Insurers are faced with the most challenging economic environment in decades. The ongoing financial crisis is having a profound effect on the industry and policyholders, and the current ways of doing business are under great stress. Moreover, this is perhaps the critical year in the current crisis, and how insurers manage uncertainty and change in 2009 likely will determine their long-term success. PwC's new US Insurance thought leadership identifies nine significant issues that will help to shape the insurance industry in 2009. The issues provide opportunities for PwC to engage our clients on issues ranging from how to manage risk in the economic downturn, to reducing costs, to anticipating and responding to change in a very challenging business environment.

The Top Nine Issues

The report includes both the leading issues and implications for the insurance industry in 2009. Issues include:

1. Risk management in the wake of the financial crisis; maintaining adequate capital and surplus; liquidity risk management; effective risk management; valuation.
2. Back to basics; solvency; improving property and casualty claims.
3. Cost reduction.
4. Changes in sales and distribution; declines in business volume; speed to market; changes in customer focus and related operating models.
5. Investment management function effectiveness.
6. Privacy and information protection.
7. IFRS.
8. Regulatory reform.
9. Economic and tax policy agenda.