One of the most significant events in the American political history happened to be on the 8th of November, when real estate baron-cum-reality TV star Donald Trump was elected as the 45th President of the United States. However, the victory has created some uncertainties in the market, especially in the insurance marketplace. The one looming question on everyone’s mind is how will; the established and upcoming insurance companies, will tackle these changes?
In its 2017 U.S. Property-Casualty Outlook, a study conducted by officers of Ernst and Young highlights a portion of the components that will have a big impact, for example, the Property and Casualty insurance service providers might have to increase the premiums as regulatory compliance for 2017 and changes made by Trump administration comes into effect.
A change in Federal Administration
The triumph by President-elect Donald Trump has brought in some vulnerability in the business sectors.
As indicated by the Ernst and Young, only a moderate 2.1 percent financial development had been estimated, however now a few experts trust that his intention to cut taxes and increment infrastructure spending could have a considerably more positive effect, expanding development and long haul loan costs. However, others are worried that Trump’s proposed policies could have the inverse impact, particularly with it comes to the Property & Casualty and Healthcare insurance industry.
The insurance industry has additionally encountered a critical decrease in its net investment income and ROI, which dropped from $31.6 billion in mid-2015 to $26.5 billion in the last leg of 2016. The perspective for 2017 is not anticipated to be any better.
How will Insurers perform during the year?
This is not a decent time to try and anticipate with exactness how the insurance business will toll in 2017 Much remains unknown, but one thing is rest assured that if your insurance company if aligned with the services of an partnering insurance firm can do wonders in keeping up with regulatory compliances as well as maintaining a healthy bottom line.
One feature that will come into play is the extent to which President Donald Trump differs on some specific issues from the Republican Congress. Typically, when the same party holds the presidency and majorities in both houses of Congress, the picture is clear. But this time, Trump’s inexperience in the political arena makes the insurance industry’s future uncertain.
As per the study, the difficulties or challenges facing the overall insurance industry with regards to claims management, processing, subrogation and payouts can be effectively tended to in four routes by:
- Concentrating on new products and service line while still addressing customer needs.
- Utilizing integrated platforms and tools to automate key processes, efficiently applying big data, BI and analytics to resolve Property & Casualty claims management bottlenecks.
- Anticipating the growing cyber risk from hackers and taking steps to identify and mitigate their activities.