With all of the focus in the news over the last two years on the Banking and Capital Markets sectors of the FS industry it is often easy to overlook the fact that the Insurance sector has and will continue to face a similarly challenging environment throughout 2009 and 2010.
The regulatory landscape for Insurers is as dynamic as ever, with initiatives such as the Retail Distribution Improvement Programme (RDIP) and Solvency II requiring compliance by 2012 bringing them to the forefront of peoples mind.
Effective claims handling and efficient processing will also come under the spotlight for many providers, as historically economic downturns have seen a corresponding rise in fraudulent claims as people look to gain un-just financial advantage. Additionally, with returns on investment greatly reduced over previous years, many insurers are focusing on getting the basic pricing and underwriting of products right to maintain profitability.
Advances in technology will be seen as an opportunity by many, particularly in the sales and servicing of products, but investment in these technologies will have to be offset against the need to manage the operational cost base carefully.
Rarely has there been a more exciting and challenging time for the Insurance sector.