It's a tough time to be an insurance executive. In 2014, most domestic Washington carriers' financial performance was supported by strong returns on their investment income.
July 14, 2015
It's a tough time to be an insurance executive. In 2014, most domestic Washington carriers' financial performance was supported by strong returns on their investment income. In sum, 8 of 11 domestic carriers made more money on their investments than they did on insurance. The 7 domestic carriers with a net underwriting loss combined for a $158m loss on $5bn gross revenue (including investments), or 3%.
It makes us wonder if insurance is a becoming an incremental step to other economic engagement, rather than a central business activity. Cambia's direct services model is one approach. Or, it could mean the consolidation happening nationally and regionally may be coming to the Blues or other plans in Washington.
