Insurance agents are middle-aged says report
The majority of insurance agents are middle-aged and more needs to be done to attract the next generation to the industry. A new survey from A.M. Best shows that almost 70 per cent of agents fall into the 40-55 age group whereas just 20 per cent are younger. With the older agents heading towards retirement there needs to be a focus on attracting millennials to the insurance industry. However the study found that many potential candidates believe that the industry is not entrepreneurial enough or “too boring”.
Despite the views of the younger generation, the insurance industry is not suffering from a struggle to hire. Almost 90 per cent of respondents to the A.M. Best survey said they had been able to fulfil their hiring needs.
The Spring Insurance Survey also asked about M&A activity with 30 per cent saying that excess capital is the main driver for considering acquisitions while growth of the business was cited by 26 per cent.
Many insurance sectors are faced with slow premium growth and are looking at various solutions with the biggest drawback to addressing slow growth being the risk of losing underwriting discipline, according to 43.7 per cent of the respondents. Other drawbacks include the cost of acquiring additional distribution, inability to further reduce pricing and a real lack of innovation perceived available for the existing product offerings. Despite the slow-growth environment, 43 per cent of respondents have made no significant changes to existing product offerings.
Prudential Financial reports 16.9 per cent increase in profits
An increase in premiums has helped Prudential Financial Inc. to grow second-quarter operating profits by 16.9 per cent. The firm, which derives about half of its profit from Japan and other international jurisdictions, has been battling currency fluctuations like all global insurers but has seen revenue rise 12.5 per cent to $12.5 billion and earnings rise to $1.41 billion, or $3.03 per share. Operating earnings increased to $1.35 billion or $2.91 per share.
Canada’s insurance body calls for action on weather costs
The Insurance Bureau of Canada has called for action to address the cost of weather-related claims. The IBC director of government relations Heather Mac, said Wednesday that severe weather is not a “freak incident” it’s increasingly normal. She was speaking in the wake of the hailstorms that hit Alberta last week. Mac said that building standards is one area that needs to be looked at to ensure that properties are strong enough to withstand the ever-increasing severe weather incidents. She believes that the current situation is “unsustainable”.
