I was fortunate enough to be able to attend Guidewire's Insurance Forum in Sydney on Friday last week and was able to see Bryan Falchuk discuss the current challenges in the insurance industry and particularly the fact that the number of people uninsured or under-insured has tripled in recent years. It was particularly good to see the analysis he did of the industry's last 20 years of financials. As an industry, we have reduced expenses on average by 3%, increased premium by over 100%, but are still seeing a combined ratio reduction of just 1.5%. All that increased premium has been swallowed up by costs. The take away is that reducing expenses is not the path to success for our business, and if you don't have a path to addressing loss ratios beyond expense reduction your business will not succeed. Bryan proposed three main ways to address the loss ratio challenge - 1. Risk Selection 2. Pricing Optimisation 3. Resilience / Mitigation Now all of ...