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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 23, 2015 03:04 PM (EST)
More than a third of insurers surveyed in the fall have reported increased market competition as being prevalent in the industry with the primary cause related to aggressive actions by competitors, according to a new A.M. Best special report. The Best’s Special Report, titled, “A.M. Best Fall 2015 Insurance Industry Survey,” states that 36% of respondents cited aggressive moves by competitors. Other issues for the increased sense of competition included macro-economic factors (14.3%), new entrants (11.7%) and regulatory changes (8.1%).
A.M. Best’s Fall 2015 Survey continued with its examination of insurers’ talent management strategies, specifically succession plans and hiring methodologies, as well as their views on how to attract and retain top talent. Nearly 65% of insurers surveyed reported that their key management teams have an average age between 50 and 60; 25.5% reported an average age between 40 and 50. An overwhelming majority (92.3%) reported that they did not enforce a mandatory retirement age for key management positions.
Approximately 95% of insurers responding to the Fall 2015 Survey represented the primary market, with the balance being classified as reinsurers. On an overall basis, the property/casualty, life/annuity and health segments represented 71.4%, 19.6%, and 5.0% of the responses, respectively.
The survey also questioned insurers about their perceptions and preparedness around El Niño and a proposed regulation by the U.S. Department of Labor that affects investment advisers.
For the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=244926 .
A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source.