MarketScout Outlines Pricing Forecast for 2018 and Beyond:
InsureTech will Impact Rates
DALLAS, July 20, 2017 – MarketScout, the Dallas, Texas based insurance exchange, MGA and forecasting company, projects InsureTech initiatives will impact property and casualty rates.
According to Richard Kerr, Founder and CEO of MarketScout, “By utilizing new tech-enabled distribution, underwriters are ultimately going to reduce acquisition expenses, which will enable them to offer the consumer a lower premium. The end result will be a win-win: a net premium reduction for the insured and an increase in ROE for the insurance company.”
“The property and casualty insurance industry has the highest distribution expense of almost any financial services industry, or for that matter, any industry. With distribution expense as high as 32%, you can be assured technologically capable millennials are going to connect with some savvy grey haired insurance folks and come up with a better mousetrap. There are already many plans under way to reformat distribution. Naturally this reformation will begin with the low hanging fruit of the industry, commoditized products. Auto insurance is a great example. Large accounts and
specialty insurance will ultimately be impacted, we just don’t know when or exactly how.”
MarketScout has been a leader in incubating new concepts, entrepreneurialism and innovation since its launch as a dot com insurance exchange in 2000. The firm believes that for the first time in the last 20 years, significant disruption in insurance distribution is imminent.
Here is why:
1. Insurer CEO’s are determined to reduce distribution costs.
2. Insurance technology effectiveness is increasing exponentially.
3. InsureTech is real. The number one target: distribution.
MarketScout will continue to monitor developments closely.
MarketScout is an insurance distribution and underwriting company headquartered in Dallas, Texas with specialty expertise in many areas. The firm is a Lloyd’s Coverholder and MGA for U.S. insurers. MarketScout owns and operates the MarketScout Exchange as well as over 40 other online and traditional underwriting and distribution venues. MarketScout is founder of the Council for Insuring Private Clients (CIPC) and administers the Certified Personal Risk Manager (CPRM) designation in partnership with The National Alliance for Insurance Education and Research. MarketScout has offices in Arkansas, California, Florida, Georgia, Illinois, Indiana, Maryland, Nebraska, Pennsylvania,
South Carolina, Tennessee, Texas, and Washington, DC. For more information, please visit us at marketscout.com.