The Property/Casualty Industry is likely to see reforms of its business rules, believe most participants of the 16th Annual Executive Conference for the Property/Casualty Industry, held in New York in November 2004. The results of the opinion poll were reported by the audit and consulting firm PricewaterhouseCoopers.

 

The overwhelming majority of the respondents expect restrictions on commissions with profitability and volume incentives. 46% of the interviewed conference participants predicted the replacement of agent/broker compensation with straight commission, and 40% expect the straight commission to be totally unrelated to volume.

 

56% of the respondents believe that the reforms will translate into lower prices for consumers and tighter profit margins for brokers. Respondents would expect the regulators to tighten their requirements for transparency of the fee structure.

 

Federal oversight of the insurance industry is considered plausible by many. 

 

42% of respondents forecast changes in the market share among the five leading companies, as independent brokers will see their share shrink.

 

Still, 38% said they believe that the largest firms in the sector will continue with their growth.