P/C INSURERS NEED EFFICIENCY:

Conning Research & Consulting Inc. released a study concluding that P/C insurers’ cost of doing business “has stagnated over the past 20 years, contrasting the remarkable efficiency gains achieved by many other industries.” For example, Conning compared P/C insurers with the banking industry, which has reduced its efficiency ratio by 20 percent since 1982, “while the property-casualty industry has remained fairly flat.” The study, entitled “Expense Revolution: Is the Property-Casualty Industry Overdue?” found significant opportunities for improvements in expenses and overall financial performance. “We know that insurers cannot sustain high-margin premiums, and claim inflation is largely beyond the industry’s control,” commented Stephan Christiansen, director of research for Conning Research. “However, the stagnant expense situation detailed by this study indicates a huge opportunity for the industry. Insurers who are aggressive in accurately gauging their expenses and taking action will create a true, sustainable competitive advantage.” For more information, contact Conning Research & Consulting Inc., at (888) 707-1177 or visit their Web site at: http://www.conningresearch.com.