Survey highlights hopes & concerns of APCIA delegates

Delegates attending the APCIA conference have their eyes on the horizon, according to a survey carried out for APCIA Today.

Asked what is their biggest challenge or concern this renewals season, with respondents able to select multiple options, almost 70 percent said that consolidation and the changing landscape was the biggest challenge, and 61 percent said that it was continued pressure on rates despite recent losses.

Clients buying less coverage was brought up by 11 percent of respondents, while another 7 percent thought that business was good and that they had no worries.

However, another 9 percent mentioned other worries, ranging from its being the third year in a row with significant trapping of capital, to mentioning reserving adverse development in long tail casualty.

One listed: “Company retention to surplus to reinsurance capacity, P&C rates moving, strength of reserves on balance sheet and underwriting imperative.”

Opportunities
The question “where do you see opportunities for your business?” resulted in a wide range of answers. Just under 53 percent said that they wanted to improve the profitability of their existing business, 46 percent said that they wanted to grow their market share in existing lines, 48 percent said they wanted to expand into new lines of business and 15 percent said they were looking at consolidation and considering mergers and acquisitions (M&A) activity.

An anonymous respondent said s/he was looking at expense reduction and writing profitable business, while another highlighted more diversification.

We asked about the other big issues on people’s agendas. An overwhelming 77 percent said that profitability was an issue, as rates remain soft and interest rates low. Another 38 percent said they were looking at talent management in order to attract and retain the best people, and 39 percent said they were looking at new and emerging risks such as cyber, including how or whether to involve themselves in these places.

Fifteen percent said they were looking at M&A, as not a week seems to go by without speculation in this area or an offer.

Finally, one anonymous respondent highlighted: “Profit and expense; working with good companies; strong management.”