Agencies Set To Increase Tech Investments: What Carriers Should Know

Insurance agencies are expecting an increased tech investment especially in social media and improved management systems. Many agencies are taking this step following a strong growth in the industry.

An independent study conducted by the Independent Insurance Agents & Brokers of America (IIABA) showed that insurance industry-wide agencies, both small and large, are keen on increasing technology investments.

Smaller agencies with revenue under $5 million are targeting social media and Internet marketing in for their investments. But it should be noted that even though there has been a strong uptake in the social media sector, agencies will continue to face marketing challenges.

P&C Insurance Industry Earnings To Rise in 3rd Quarter Due To Market Factors [REPORT]

The P&C insurance industry is expected to witness a rise in third quarter earnings owing to various market influences such as consistent pricing power, low catastrophe losses and continued reserve releases, reveals a recent report by Barclays Capital Inc. during a conference held in New York.

In addition, Barclays said that “firm (although peaking) property/casualty insurance pricing is translating into improved underwriting results.”

This year, the overall property and casualty market seemed to be gaining. However, the property catastrophe reinsurance rates may face a rough downtrend of 10% in January 2014, followed by renewals vs. declines of 10% to 15% or more during mid of 2014. Barclays claims that one major reason for this downtrend would be entrance of new alternative capacity markets that will put the pressure on property catastrophe reinsurance pricing.

Barclays also said, “Traditional reinsurers are attempting to get deals done early and offering multi-year deals as well as aggregate coverage, which suggests property catastrophe reinsurance pricing could continue to deteriorate.”

 

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Insurers unable to keep Pace with Web Experience, especially Health; Survey finds

An independent survey by Temkin Group reveals that the Insurance industry is still lacking with web experience, with most of them not having social media presence. Health scores the lowest amongst all.

The Temkin Group, a customer experience consultancy, through its annual ratings of online customer experience stated that the insurance industry has only few players who have good web experience. Most of the insurers are lacking web presence and have little or no engagement in social media.

During the survey, a total of 211 companies in 18 industries were ranked, including 14 insurance carriers and 12 health plans. Although some players in the Property & Casualty showed strong presence such as USAA’s insurance arm at third overall, GEICO (33), MetLife (41), Nationwide (47), and State Farm and Progressive (tied at 56). Six out of 54 insurers were ranked at 56 points and above. Liberty Mutual and Allstate checked in with a tie for 88.

Reinsurers Get Attracted Owing to Falling P&C Catastrophe Rates in U.S.

Despite losses over $30 billion caused by Superstorm Sandy last year, insurers are still battling to retain their focus in U.S. property catastrophe.

According to a report from Willis Re, a reinsurance risk advisor and broker, catastrophe rates in U.S. are down as much as 25 percent in some parts of the country. Also, the nationwide average downfall in rates is up to 20 percent. The report named “Supply Chases Demand” also revealed that losses caused by tornadoes in second quarter in U.S. and Europe will cause a modest impact in the global insurance market. “[A]s it stands, it is not easy to see any end to the continuing softening of the global reinsurance market,” the report said.

Willis Re says that reinsurers are taking robust measures and new ways to retain their market position owing to threat from new market entrants.

Property & Casualty Insurance Industry rise expected to continue throughout 2013

Barclays Capital Inc recently released an analysis stating that the strong uptake in Property & Casualty insurance pricing should continue through 2013. It was noted by Barclays that the pricing survey by Council of Insurance Agents & Brokers’ fourth-quarter 2012 showed an increase of 5% year over year (YoY), up from 3.9% gain in the previous quarter.