InformationWeek 500 2010: Insurance Report
This is the sixth year of a soft insurance market during which premiums have declined an average of about 9% per year, according to TowerGroup, a research firm focused on financial services. “The economy is still weighing down the carriers,” says Karen Pauli, research director in TowerGroup’s insurance practice.
In the course of this prolonged decline in premiums, the industry has realized it has to go beyond quick-fix cost-cutting and do some long-term restructuring. “Historically, the carriers’ reaction to a soft market would be to fire a whole bunch of people,” Pauli says. “But most of the carriers have matured to the point where you can’t just get rid of people. You have to do something.”