June 21, 2005
| Contact: | Anne Steinberg or Greg Jones Kitchen Public Relations 212-687-8999 anne@kitchenpr.com or gjones@kitchenpr.com
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Conning Research: "Right States" Approach Works for Property-Casualty Insurers
- One component in broader strategy
(Hartford, CT) June 21, 2005 - Statistics offer justification of the "Right States" approach utilized by Property Casualty insurers-to a point, according to a new study by Conning Research and Consulting, Inc.
"Our analysis of data from 1998-2003 shows that for many lines in the property-casualty industry, right-state selection can allow an insurer to improve on the industry's ROE by achieving typical industry results in a carefully selected mix of states and lines," said Bruce Hale, analyst at Conning Research & Consulting, Inc. "Right state selection is not a focal strategy, however, but one of many factors that determine an insurer's performance."
The Conning Research study, "Predicting State Performance: Is a 'Right States' Strategy Wrong for Property-Casualty Insurers?" looks at results across states by line in order to determine persistency at a granular level. Further, the study identifies implementation perils and operational insights that emerge from the analysis.
"Property-casualty insurers can cherry-pick the best states by line-with some notable exceptions-and feel confident that in doing so they have helped future performance," said Stephan Christiansen, director of research at Conning. "However, we did not find evidence supporting those who use state performance to jump into a state market at what they consider a low point, expecting a performance lift from over-correction. Additionally, we identified a number of implementation issues that could have a profound effect on the Right States approach."
"Predicting State Performance: Is a 'Right States' Strategy Wrong for Property-Casualty Insurers?" is available for purchase from Conning Research & Consulting, Inc., by calling (888) 707-1177 or by visiting the company's web site at www.conningresearch.com.
About Conning Research & Consulting, Inc.
Conning provides both public and proprietary research as well as consulting services to the financial services industry. The Conning name has represented excellence in independent insurance industry research for more than 90 years. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and can provide in-depth insights and analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.
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