The last few years have not necessarily been the best for many insurance companies operating in the property and casualty industry, but it seems as though that may be shifting in the near future. With the economy improving and more people across the country consequently finding themselves in better financial positions, firms operating in this realm may be poised to take a big step forward, and that may be good news for insurance agents, who could start to see a lot more business coming in.
The first quarter of the year has already come to a close, and it seems that most P/C insurers found themselves in good positions thanks to relatively little in the way of losses to catastrophes around the country, smarter risk management, and growing reserves, according to a report from Zacks Investment Research. Moreover, they’ve also seen growing premiums and pricing for both normal insurance coverage, and reinsurance.
At the same time, it’s important for these companies to note that with these improving situations across many aspects of their companies, the news may not be all good, the report said. Because of the potential for growth in the P/C industry, more companies may aggressively try to expand their roles in the sector, which in turn would increase competition for what may still be a relatively small number of potential policyholders.
Of course, another thing that could lead to more participation in P/C products is that some companies may want to focus on coverage that isn’t negatively affected by the low interest rate environment that still persists today, the report said. Zacks currently ranks the P/C industry as being the 26th-strongest of the roughly 260 it analyzes, but that’s a huge step forward from the No. 62 observed in February.
Insurance agents who operate in this field may therefore want to prepare themselves to see a little more business in the coming months, and potentially deal with a more cutthroat environment when it comes to competing with workers from other companies when trying to attract new clients, or retain existing ones. The more that can be done to highlight the benefits of a particular company’s offerings in this regard, the more likely an agent may be to keep consumers engaged with their products, especially as the economy continues to improve.