What are your expectations for the Economic Stimulus? Has the debate prompted any debate about changes needed within your own company? By definition, a stim.u.lus [stim-yuh-luh s] is something that incites to action or exertion or quickens action, feeling, thought, etc. I can't help but make the parallel to the insurance industry and how the current market challenges are driving carriers and underwriters to rethink the status quo and explore and invest in new technologies that "stimulate" their business by automating processes, making it as easy as possible for agents to work with them, and helping to increase revenue.

I sometimes hear carriers refer to "weathering the soft market, until it turns." Fortunately, a benefit of the longevity of the sector is that many insurers know that they don't dare sit still. The author of one of the suggested articles in this newsletter wrote - "While the current market situation is challenging at best, it also provides underwriters with an opportunity to rethink business processes, improve and enhance data environments, invest in collaborative technologies, and attract high-quality talent."

With challenge comes great opportunity for reinvention. We can learn from companies in other sectors as well; those known for their successful strategic advances during tough times. This month, Intel pledged to spend $7 billion of internal cash during the next two years to upgrade existing chip fabs and keep thousands employed. An Intel spokesman told Reuters "You never save your way out of recession. You invest your way." I'm betting that Intel will see some healthy ROI on their move even in the near term.

FirstBest whole heartedly agrees that technology innovation – and adoption – is the key to driving insurer profitability. Next week, Rodd Zolkos of Business Insurance will moderate a FirstBest-hosted Webinar about "How Technology Can Help Insurers Capture New Markets More Rapidly and Profitably." We have a high number of registrants, telling us the topic is spot on. I am looking forward to joining Ellen Carney of Forrester and Richard Kerr of MarketScout for a lively panel discussion intended to "stimulate" real thinking about ways insurers can improve their competitive position, while balancing their book's quality and breadth.

The panel has many ideas about expanded sources of revenue for P&C insurers to enter new markets. The net: insurers must adopt new approaches and technologies that accelerate the development of new products and offer first-mover advantages. We'll give attendees plenty of stimulating ideas for thriving, versus surviving, in a soft market.

I hope you'll join us on March 3rd for a great virtual event!



John Belizaire
CEO and Founder
FirstBest Systems

The Skinny for P&C - Recent Industry Articles

Economy and Technology will Alter Underwriting

With the difficulties in 2008's credit market providing the background, 2009 promises to be a challenging year for insurance underwriters. Interestingly, while the market will certainly be volatile, the work done in the last few years by some insurers will position them to leverage the current market conditions into significant market opportunity. Insurance Networking News. Read More »