The biggest single risk impacting the insurance business, according to insurance executives, is irresponsible competition. This is the conclusion of a survey conducted by Standard & Poor’s at a recent insurance conference (see here).
Irresponsible competition, chosen by 36% of the executives as the number one risk, is when competitors price their product too low. (Really?….). And how are the underwriters at the companies whose executives made this choice doing their job? One would presume by either not writing business or pricing it less than the competition. But is it irresponsible when your own underwriters price risks less than the competition, or just when the competition prices it lower than yours? It must be all the other guys.
Specialty Insurance Expertise: Tennant Risk Services
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