Personal Auto Insurers Will Seek New Strategies in a Challenging Market
September 12, 2018
Conning—Personal Auto Insurers Will Seek New Strategies in a Challenging Market
(Hartford, CT) September 12, 2018—The personal auto insurance market needs to evolve in response to new market dynamics, according to a new study by Conning.
“The personal automobile insurance market is experiencing an expanding set of challenges—including consolidation, evolving distribution structures, and product commoditization—that may well redefine the business over time,” said Alan Dobbins, a Director, Insurance Research at Conning. “Improvements in auto and highway safety point to continued decreases in accident frequency, leading to a potential long-term period of slow to negative growth for insurers. Even more dramatic change is possible with increased consumer acceptance of ridesharing and the longer-term potential of autonomous vehicles.”
The Conning study, “The Road Ahead for Personal Auto Insurance” identifies possible paths for auto insurers in response to the current state of the personal auto market and the market pressures from evolution in personal auto transportation and advances in vehicle technology.
“In sum, the personal auto insurance market is facing both growth pressures and compressing margins,” said Steve Webersen, Head of Insurance Research at Conning. “As in other slow-growth and commoditized industries, personal auto insurers will need to re-evaluate their market positioning to compete successfully. In this study, Conning has identified and explored potential insurer strategic responses, from achieving and defending a low-cost market position to mining high-growth niche markets, to product expansion and heightened service models. For those insurers who remain committed to the auto insurance market, refined strategic positioning will be crucial.”
“The Road Ahead for Personal Auto Insurance” is available for purchase from Conning by calling (888) 707-1177 or by visiting www.conningresearch.com.
Conning (www.conning.com) is a leading investment management firm with approximately $132 billion in global assets under management as of June 30, 2018.* With a long history of serving the insurance industry, Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, award-winning risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
*As of June 30, 2018, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited, and Cathay Securities Investment Trust Co., Ltd. (“SITE”). SITE reports internally into Conning Asia Pacific Limited, but is a separate legal entity under Cathay Financial Holding Co., Ltd. which is the ultimate controlling parent of all Conning controlled entities. [C7451798]