A quartet of top insurance executives considered the state of the industry during a panel discussion held during
One question the executives pondered was the impact of the economy on the insurance industry.
“We will see some stability with some improvement in the economy,” McGee said. “We will see a more rational pricing environment in the long term, but I don’t think we’ll see growth rates for quite some time like we’ve been accustomed to.”
The subject of pricing was another topic of discussion. Michael LaRocco,
“There will always be some movement in cycles, but what you’re seeing in personal lines is the gradual elimination of the cycle because companies know how to match rate to risk and are able to quickly respond, raise rates and maintain profit margins,” LaRocco said. “In commercial lines, we can do much better than we are today. We have to begin to show some discipline as an industry.”
The fractious regulatory environment also elicited some strong views, with executives stating the financial crisis was not justification for radically revising the way insurers are regulated.
“The state system has worked because the business is local,” Tom Motamed,
“What’s very clear to us is that we do not believe we’re a systemic risk or that we should be part of that,” Hughes said.