WIN - Spring 2011 - (Page 9)
BY JOHN M. WEPLER, PRESIDENT, MARSH, BERRY & COMPANY, INC.
HOLD, FOLD OR DOUBLE DOWN:
IN TODAY’S MARKET
URING THE past three years, you have been dealt a hand of bad cards. All players in the insurance distribution chain have witnessed a prolonged soft market, a severe economic recession and a massive reduction in the exposure base. In poker terminology, you have been handed a 7, 5, 4, 3, and a 2 (the worst possible hand in five-card poker). During this time of turmoil, executives have had to make a slew of difficult tactical decisions, just to survive. Staying in business has been the strategy for most MGAs as it has been next to impossible to hang on to clients, revenue and profit. Many have suffered so greatly that they are operating in the danger zone, a deficit trust position. Most have ceased reinvesting in the next generation and now have an insufficient bench to affect perpetuation. Expense cuts, reductions in staffing and owner recapitalization are just a few of
the short-term solutions that have been implemented by industry players to survive and stay in the game. The tables have started to turn. The economy is picking up, the exposure base has stopped eroding and redundant reserves are rapidly running dry. While carriers remain over-capitalized, it appears the cards being dealt are improving, albeit slowly. Now is the time to place your bet. The next three years will be the time to play your hand. Those that will run the table are moving from short-term tactical decision-making required to stay in business to the implementation of a strategic plan designed to maximize value. How value is maximized in your particular situation depends squarely on what changes you are willing and able to implement. It is time to look in the mirror and determine whether you have the desire, the stamina and the commitment to embrace and execute value enhancing change. Then play your hand and either hold, fold or double down.
W IN | Sp r i n g 2 0 1 1 | 9
Table of Contents for the Digital Edition of WIN - Spring 2011
WIN - Spring 2011
Table of Contents
Welcome to “WIN”
Hold, Fold or Double Down
Underwriting the Customer Relationship
Report From Capitol Hill: Fasten Your Seatbelts
Interview With La Insurance Commissioner James Donelon
Regulatory Reform: Incremental Improvements or Exercise in Frustration?
Are You Swimming Naked
In the Winner’s Circle: Patricia Roberts, General Star Management Group
2011 Wholesale Insurance White Paper Winners
Sustaining the Wholesale Insurance Industry
Index to Advertisers/ Advertisers.com
WIN - Spring 2011
If you would like to try to load the digital publication without using Flash Player detection, please click here.