The World (of U.S. P&C pricing) Is Flat
14 October 2009
SNL reported today on two benchmarks for Property and Casualty pricing in 2010.The bottom line is that revenue support is not going to come from a hardening market.At best, prices may stay flat.
According to SNL, a MarketScout report forecast flat to slightly higher prices, while a Willis study concluded that price increases would be difficult to come by.
All of this points to the importance of keeping business that is currently on the books and looking for ways to earn business from other carriers. As noted in other blog postings, the change in this approach in this economic environment is that growth will come from service, distribution channel management, and acquisitions. New market and/or innovative product initiatives will not be the engines that they have been in the past.
For systems professionals, this means lowering expenses and raising quality on what is already being done and selectively investing in projects with shorter timelines that have direct revenue impact.