Key front office trends and the implications for the non-life insurance industry
As the economy has improved across most of the world, the global non-life insurance industry has participated in the recovery with written premium growing 4.4% in 2010. This was especially true in Asia where written premiums grew by 16.8% the same year. The growth trend is likely to continue in 2011, although the underwriting margins continue to be under pressure due to the impact of catastrophic and other major claims across the world, such as the devastating earthquakes in Japan and New Zealand. In addition, the uncertainty over economic issues lingers on, and could also affect the future growth of the industry.
The non-life insurance industry is witnessing shifting trends across the front office, policy administration, and claims—the three core functions of the insurance value chain. This paper looks at key emerging trends in the front office function of non-life insurance firms.