An industry survey reveals that pricing is the top of concern facing major reinsurers and carriers in 2004, dramatically surpassing last year’s survey results where the top concern was terrorism.
According to the survey – Industry Outlook 2004 – conducted by National Marketing Services Inc., 82 percent of the executives polled also viewed Democratic presidential hopeful Sen. John Kerry as a foe of the industry. Despite some emerging concerns about President Bush and lingering worries about terrorism, industry executives solidly support a Bush re-election bid by 57 percent compared to 19 percent support for Kerry, the survey concluded.
The survey, which was conducted by telephone with a random sample of insurance executives in the United States and Canada, last year¹s major concerns about mold have been substantially reduced, while concerns about media fairness to the industry have significantly increased. Eighty-two percent now view the media as a foe, nearly double last year’s 47 percent response. According to the survey results, those viewing the media as a friend dropped from 37 percent in 2003 to 5 percent this year.
According to National Marketing president Larry Neilson, “Considering the uncertainties of the world in an election year, the need to quantify and track these industry trends is more crucial than ever.”
The 20 minute survey interviews consisted of more than 40 questions on industry trends including: confidence in the economy, government, market and the insurance industry; priorities for elected officials: challenges facing carriers and reinsurers and their response; friends and foes of the industry; terrorism and how companies are responding; and the potential threat of mold and asbestos to the industry.
National Marketing’s Market Research Division coordinated the development of the study’s methodology and data analysis with Dr. Chris Collet. A research and analysis specialist, Dr. Collet is an honors graduate of University of California, Berkeley, with a Ph.D. from University of California, Irvine, where he remains a visiting faculty member.