The long view forward is worse than Dorothy’s when she looked down the yellow brick road and imagined lions, tigers, and bears (“Oh, my!”).

Lacking a pair of magical ruby slippers, we see companies pursuing two distinctively different approaches to this long-term challenge of aligning operating expenses with the new normal of lower expenses and higher claims. Some are pursuing transformational strategies to achieve a significant shift in cost structures. Others are taking the traditional approach of increasingly tighter annual expense control.

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