And they will be out there, going after a bigger slice of the world market. The way to stay ahead of the game is by developing and maintaining a competitive edge. This means improving productivity and finding more efficient, less costly ways, of delivering the products that foreign customers want. And it goes beyond innovation and investment in new technologies.
Once shareholders and investors recognise that they will need to accept lower returns on their investments than during the boom years, the process of industry consolidation is likely to begin. Improved returns on investment will require greater efficiency, better standards of customer service, and new product innovation, all of which are more likely to be delivered by larger more diversified insurance firms.