After discussing the key emerging trends in personal lines, MCA’s Tom Torcia discusses how each will impact mutual insurance companies in the year ahead, and what they must focus on to be successful in this competitive economic environment.
VIDEO TRANSCRIPT
Hi I’m Tom Torcia here continuing our series Mutual Matters: Insights from MCA. In a previous video I talked about the key emerging trends in 2022. So, what does this mean for the year ahead? At MCA, we see the most successful mutuals will have a solid strategic plan and stay nimble on current and emerging trends.
That means monitor, adapt and pay attention. It is critical to stay close to competitors and monitor what’s constantly going on in the marketplace. Adapt to changes in the legal and regulatory environment. We know they will continue to evolve; we need to stay close on changes that impact our business. Pay attention to the data analytics as it continues to evolve and understand more about how it impacts how we’re doing business every single day.
Maintaining a balanced approach when it comes to inflation. Complementing rate with underwriting actions is a critical way of balancing our portfolio over time. It’s clear from the recent earnings results from national carriers that the rate and the inflationary environment is significant. We think it continues. But being able to use multiple levers in your overall pricing and underwriting decision-making process is critical of balancing long term portfolio position.
Learn to leverage your data. Our most successful partners focus on key performance indicators to manage and monitor their overall business. Indicators like new business, retention, premium, understanding your portfolio and your profile mix are so important in time like today.
These are uncertain times we live in. Industry wide loss pressure is impacting all carriers and we’re going to continue to see multiple levers that carriers are utilizing from rate underwriting and segmentation. And will continue to be challenging. But we do not want to take a wait and see approach.
We want to be proactive in how we manage through this economic environment. To effectively manage the year ahead, it’s critical to have an operating plan that aligns your company’s mission and vision.
Stay tuned for more from MCA.