Insurance providers who come close to meeting the desired criteria are often thought to be too expensive. In 1 to 2 years we are all in for less clarity, and in 3 to 5 years there will be even fewer choices. There will be a definite impact upon how the insurance business is conducted in the future. The only sure winners are the investment banking, accounting, and legal firms. A number of factors are leading to changes in the industry.
Soft pricing is only part of the performance challenge.
The other challenge is providing customer value along with cost effective delivery. Most insurers have been working hard to increase market share and reduce overhead costs to improve their financial performance. With regard to another issue, some insurance companies appear to have multiple efforts under way to introduce technology to improve financial performance. The efforts do not appear to be well defined and are thought of more as IT issues. Most insurers are applying technology to existing products and processes, which were designed for a high degree of human interaction.