Stability a few years off for insurance industry

It may be a few years before the insurance industry sees a return to relative stability and certainty, according to PricewaterhouseCoopers LLP (PWC). 
This will occur as the industry reacts to the effects of regulatory reform, increased government intervention and potential tax law changes in the aftermath of the financial crisis, according to a PWC report, Emerging from the Storm: The Day After Tomorrow for Insurance.
The industry landscape could look markedly different within five years, and Americans may find their insurance policies underwritten by a handful of large, well-capitalized firms that can demonstrate financial strength and economies of scale, PWC reports.
The report outlines nine key developments expected to reshape the industry over the next five years, as well as their strategic implications.
The most significant will likely be the sweeping regulatory changes resulting from proposed legislation to reform health insurance and increase federal oversight of insurance and financial industries.
“There is only one certainty for the insurance industry: change is coming and, as a result, the competitive landscape will be very different in five years from what exists today,” Bill Chrnelich, partner, PricewaterhouseCoopers’ insurance sector, said in a release. “This will jeopardize some insurers’ business, but it should also enable those who are better prepared to excel in a new environment.
“Success will likely depend on close monitoring of developments and the ability to quickly capitalize on opportunities as reforms and changes within the industry become clearer.”