As the end of the year approaches, property and casualty insurers are already looking ahead to 2013 and considering which practices will help them boost insurance sales. As competition intensifies and new compliance rules are put into motion, many insurers may be slated to focus on acquisition and new technology to improve insurance prospecting.
This prediction comes from a new Ernst & Young report that highlights the tactics and strategies property and casualty insurers might put into motion next year to stay competitive. The study's authors note that acquisition may be an effective way for companies to extend their reach into new geographical locations and adopt new products for a more diversified customer base.
"Outperforming competitors will require insurers to maximize customer profitability and persistency by continuing to invest in infrastructure, systems, intellectual capital and technology," said David Hollander, global insurance advisory leader at Ernst & Young.
In addition, seeking out new product solutions to cater to a larger and more technology-focused group may become another necessary tool to remain relevant and profitable. As consumers demand more technology-based solutions that provide them with real-time updates, Ernst & Young notes that insurers may be forced to upgrade existing technology to retain loyal customers.