The National Underwriter News Service yesterday reported statements made by Boston-based Liberty Mutual at 18th Annual Executive Conference for the Property-Casualty Industry:
Insurers to be competitive need to focus on service and underwriting rather than price, the head of the ninth largest U.S. property-casualty insurer told industry counterparts at a meeting here yesterday.
Ted Kelly, chairman and chief executive officer of Boston-based Liberty Mutual, told his audience that one of their biggest challenges is breaking from a commodity-based business model—akin to one used by fast food giant, McDonalds.
Mr. Kelly ranked "differentiation based on service rather than price" as the second greatest challenge for insurers, during a keynote speech at the 18th Annual Executive Conference for the Property-Casualty Industry.
He ranked this challenge directly behind dealing with the federal government on issues like the extension of a terror insurance backstop, and keeping the government out of natural catastrophe insurance.
I couldn't agree more, and I believe I've said as much on this blog, and elsewhere, particularly in my recent ViewPoints article: The 21st century insurer: Beyond price—Successful responses to shrinking opportunities
My suggestions for how insurers can avoid selling insurance "like dollar meals" are all laid out there, so I shall not belabor the point in this post.