A new survey of insurance providers by global consulting firm KPMG LLP indicates a “dramatic reversal” of this sector’s economic outlook is underway – a reversal that may result in higher insurance rates.
According to the 350 insurance executives polled by KPMG, more than a third (36%) said that business conditions for the insurance sector have worsened compared to a year ago – a significant turnaround in executive perception compared to last year’s survey, the firm noted, when more than half (51%) said conditions had improved from 2009 to 2010.
In addition, many do not anticipate much brighter prospects in the next 18 to 24 months, as 28% predict another downturn/double dip before the economy begins to significantly recover, and 58% believe the recovery will not occur until 2013 or later.
Facing this economic environment, only 31% of insurance execs surveyed expect their company to perform above expectations next year – a decline of 10% compared last year’s poll – while 24% expect to perform below expectations; up from 19% in 2010.
EU-Digest
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