Against a backdrop of excess capital, low interest rates, increasing broker leverage and decelerating insurance price hikes, carrier management teams are zeroing in on expenses to squeeze out some profits, an executive said here.
Executive SummaryCarrier management teams are evaluating their costs and trying to adjust their infrastructures to squeeze out some profit, Endurance Insurance's Douglas Worman said at the recent IACP conference. He also said carriers need to rethink their hiring practices or risk shackling innovation.
“We’re all evaluating our cost basis, trying to understand our infrastructure and to adjust that infrastructure, because right now the cost basis from the insurance underwriting side is unsustainable [over the] long term. It just won’t work,” said Douglas Worman, chief executive officer of U.S. Insurance for Endurance Insurance.
Worman gave the assessment during a presentation at the U.S. Regional Conference of the International Association of Claim Professionals in early June, where he also discussed the need for carriers to break from the same old hiring processes to attract new talent from other industries to inject new viewpoints and experiences into tired business models.