At the 2022 NAMIC Annual Convention, AAIS sat down with AM Best President and CEO Matthew Mosher to discuss industry issues and trends, their impacts on 2023 strategies, his advice for insurers, and more.
According to Mosher, talent, and the ability to track talent is a pressing issue. Mutual companies are currently struggling to attract younger people to their office locations. This requires mutual insurers to be innovative in terms of how they develop their workforce and attract the strengths they need. “Allowing people to have more work flexibility in order to attract new talent is important,” Mosher stated.
Mosher also discussed the impacts of current inflation in the economy, sharing that he has no doubt that inflation will impact mutual insurers as well. Mosher notes that the mutual insurance industry has an advantage in the face of this challenge, sharing that “mutuals know their businesses and they have a strong story to tell. If mutuals continue to understand their business “they will stay on top of the loss trend.”
Mosher also indicated that the strongest companies he has seen are ones that are conservatively run regarding loss trends, saying “they watch the trends very closely. With inflation rising, now is the time to watch.”
As for the future, Mosher predicts that there is going to be pressure for all primary insurance companies regarding reinsurance and its current pricing – in some cases, property coverages aren’t there. Currently, AM Best is looking for connection with their policyholders and insurers.
To view the full interview, please click the video above.