Conning: P&C Shakeout Coming

Hartford, Conn. - The dominant position of large market leaders, the effects of burgeoning technology and a robust, competitive pricing environment will cause dozens of insurers to exit the personal P & C industry over the next few years, according to a new study by Conning Research and Consulting Inc., a Hartford, Conn. provider of public and proprietary research as well as consulting services to the financial services industry.

"We have analyzed industry results for the period 2002 to 2004, and some of the underlying causes for those results, and found significant changes in the competitive landscape over the three-year period," said Hale. "A handful of larger personal lines market leaders, and a few outperforming specialist players, will soon be able to set and maintain aggressive pricing levels that will be untenable for many lagging insurers."