^aPark Strategies, LLC, 101, Park Avenue, New York, NY 10178, U.S.A. E-mail: gserio@parkstrategies.com

Abstract

The insurance industry is facing a number of serious issues from external forces, not the least of which has been a significant increase in regulatory and enforcement actions by American and international authorities. These forces have worked to compound challenges already confronting insurers in the underwriting, rating and claims settlement areas. However, it can be theorized that the external forces facing the industry are directly correlative to the internal issues as (1) these internal issues, especially in the areas of natural catastrophes, terrorism and risk management, are really reflective of the challenges facing governments, businesses and the public, (2) those sectors are coming to rely upon insurers more and more to address those issues, and (3) the insurance industry will not be able to meet those challenges facing its various constituencies without being at peak operational, financial and ethical effectiveness and efficiency, which is why it is critical to focus on addressing those external forces.