Top Insurance Industry Issues in 2011

Top Insurance Industry Issues in 2011 describes in detail the new and existing challenges the insurance industry is facing in 2011, and the strategies insurers can use to address them.
  • Real and proposed changes to federal regulation, accounting for insurance contracts, and solvency will have a significant impact on all aspects of insurers' business and operations.
  • In an attempt to grow and maintain profitability, many insurers are attempting to transform their business and operating models to create new market positions. In the process, they are taking a close look at their products and services, including how they approach customers and distribution.
  • As insurance companies face increased pressures from more demanding customers, new regulations, and aging technology systems, they are continuing to invest in improving operational efficiency, increasing revenue, and reducing costs. Because more effective integration and use of information can improve all aspects of their business, insurers are paying closer attention to how they generate, maintain, and apply information. In addition, insurance executives are particularly focused on making improvements to core operations, including policy administration, claims management, and billing.
  • An uneven economic recovery, uncertainty about regulatory and tax legislation, and a low interest rate environment (among other factors) are giving potential buyers and sellers pause for thought as they consider whether or not to make deals.
  • Despite a recovery in the equity markets, the challenging interest rate environment and composition of investment portfolios continue to have a significant effect on insurers financial strategies and results.
  • The tax legislative environment remains uncertain as a result of divided government, but there has been a general push from the federal government toward preservation and expansion of the US tax base.

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