Managing the cycle is the most important issue for the insurance industry in 2008, according to the latest annual underwriter survey from LloydÃ¢â‚¬â„¢s. Some 67 percent of LloydÃ¢â‚¬â„¢s underwriters believe the industry made insufficient progress on managing the cycle in 2007 and 93 percent believe the industry is currently in a softening stage of the cycle. Containing operating costs and recruiting and developing talent in the industry are the next most important issues for the industry, the survey reveals.
Meanwhile, the instability of global financial markets is seen as the most significant factor impacting the industry during 2008, followed by changing global dynamics and emerging markets, and the growth of corporate liability. Interestingly, some 62 percent of underwriters believe that insurance buyers need to do more to prepare for the impact of liability risk on their business, and over one-half believe that the growth of the compensation culture is out of control. Check out further I.I.I. info on the U.S. liability system.