(Hartford, CT) January 9, 2005 – The dominant position of large market leaders combined with new marketplace developments will cause dozens of insurers to exit the personal property-casualty industry over the next few years, according to a new study by Conning Research and Consulting, Inc.
“We have analyzed industry results for the period 2002 to 2004, and some of the underlying causes for those results, and found significant changes in the competitive landscape over the three-year period,” said Bruce Hale, analyst at Conning Research & Consulting. “A handful of larger personal lines market leaders, and a few outperforming specialist players, will soon be able to set and maintain aggressive pricing levels that will be untenable for many lagging insurers.”
The Conning Research study, “The Emerging Shakeout in Personal Lines,” identifies the handful of market leaders and analyzes their characteristics. The study also probes the conditions that will likely hold trailing companies back, exit strategies for the laggards, and the impact of market consolidation on personal lines and on the broader property-casualty industry.
“The personal lines market is ripe for a major consolidation,” said Stephan Christiansen, director of research at Conning Research & Consulting. ” Size and advances in technology, coupled with the market dynamics outlined in the study, will play to the advantage of the leaders for some time to come. Some also-rans will be looking to sell, merge, or otherwise leave the field.”
“The Emerging Shakeout in Personal Lines” 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 provides in-depth insights and analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.