After the volatility of 2020, a new year may be a welcome sight to many, including insurance companies. However, 2021 will likely continue to provide insurers with a significant array of challenges.
The low interest rate environment may still dampen life-annuity insurers’ portfolio yields. Significant political changes in Washington could affect health insurers, whose prospects remain highly tethered to policy changes. Property/casualty insurers may see strong growth in commercial lines, but like the other sectors must continue to expand their use of technology in everything from sales generation to underwriting to processing to claims.
The Conning Commentary for January 2021 provides an outlook for the insurance industry in the year ahead.