The insurance industry is probably one of the most important resources serving industries in the United States. Today, the industry sector is experiencing some big changes due to Obama administration and congressional Democrats soured last summer.
In order to kill or significantly modify the major health reform bills moving through Congress, six of US’s biggest health insurers began quietly to pump big money, which is around $10 million to $20 million, into third-party television advertisement.
According to Peter R. Porrino, Global Director of Ernst & Young’s Insurance Industry Services, the life insurance companies would likely “continue to face a challenging environment” that required an improvement on many of their goals and objectives. Ernst & Young is now warning that insurers might change their business models and shift to a more “back-to-basics” approach to make up for decreased earnings and increased regulatory oversight. It was also suggested that life insurance companies shy away from investing non-traditional capital markets that could take years to recover from the current economic crisis, while also planning more adequately for financial issues that may arise in the future such ad liquidity crises.
So, people with life insurance policies should keep an eye on their long-term or short term insurance plans for 2010.