While acknowledging that performance, the real beneficiaries of technology are those companies that change their business processes to take advantage of such improvements. This year, like 1995, will undoubtedly produce further advances in technology to distribute and underwrite products, lower overall expenses and better serve the policyholder. In such challenging times, the best managed companies will win the day. Richard J. Freeman is vice president of Century Capital Management Inc., the management company for Century Shares Trust, the nation's oldest and largest mutual fund investing in insurance stocks, having started in 1928. Business activity is robust, with all major sectors of the economy contributing to growth.
Unemployment is near cyclical lows.
Inflation has been remarkably subdued. And American workers appear to be holding their own against inflation. Unless conditions change dramatically before year-end 1995, a cut in interest rates is unlikely to be forthcoming from the Fed until President Clinton and the Republican Congressional leadership strike a credible deal to balance the federal budget by year 2002. This terrific economic setting is favorable for property-casualty insurers. All else equal, a reasonably strong, well-balanced economy means steady growth in insurance exposures in personal and commercial lines of business.