The Women's Network Group Talks Insurance

The Women's Network Group held its second session in Sacramento, California recently to discuss the challenges and opportunities in a softening marketplace and economy. Among the participants in the meeting were women from various industry sectors, including insurance and financial services.

As the insurance industry moves forward to improve its business performance it must also manage the challenges of a recession. Special challenges for the P&C insurance industry in the upcoming year include the inability to meet revenue forecasts, declining operating margins, increase in debt and a decline in market share for certain client segments.

However, the recession could have a few upsides for the insurance industry. "An economic downturn can create great opportunities for new product and service innovation. In addition, it also creates the opportunity to break bad, and outdated, habits. Both innovation and creativity can be the best ingredients to produce great results in 2008," said Julie Davis, executive vice president, Aon Corporation. "While sagging expectations for the U.S. economy may lead some client industries to lower their revenue forecasts, new product and service expansions into new markets can't be overlooked," said Davis.

Davis led a group discussion at the Women's Network Meeting in March and they reviewed common issues that the insurance industry faces in 2008.

They include changing distribution channels, new product and service innovation, mergers and acquisitions, talent management, technology integration, regulatory and transparency issues and a continuing soft market. The group also discussed challenges around cost of capital and internal hurdle rates for new ideas. "These are the issues that will matter the most in 2008," said Davis.

For more information on the sessions, send an email to Anna Smith at californiawomensnetwork@gmail.com or Julie Davis at julie_k_davis@ars.aon.com.