P&C companies weathered the recession better than most financial services companies largely by pricing to the bone to retain customers. Agents, brokers, and other intermediaries have performed in line with their markets, though with the solace that comes from providing advice and risk placement/management services rather than assuming risk.

With little to negative underwriting income and investment income stagnant, carriers need to intensify focus on expense ratios while continuing to emphasize disciplined underwriting. On the revenue side of the equation, the returns will likely come from investments in retention - becoming easier to do business with and developing and rewarding the right channel partners. Additional growth ought to come from targeted, niche-based acquisitions that can be easily integrated with existing operations.

Brokers and agents are expecting this to be the year a hard market emerges.  But as they say, hope is not a strategy.  Brokers must focus on providing value to their customers - building niche expertise that enables tailored services, the right insurance program advice, and preferential market access and pricing. Brokers and larger independent agencies should seek to continue to pursue attractive acquisitions and address a graying producer workforce.

Our mission at Bridge is to see to it that our clients prosper under whatever economic conditions exist and outperform their competitors and the industry as a whole. Our insurance practice is focused in three areas:

• Distribution Channel Optimization — Architecting distribution strategies and constructing and managing distribution networks to maximize production
• Cost Management — Managing costs to the lowest level consistent with service and quality objectives, especially when it comes to claims management
• Technology Strategy & Planning — Using IT to maximum business advantage, setting priorities and investment levels, and optimizing performance