According to a report by Swiss Re Institute Research, the US property and casualty industry is expected to see a significant improvement in profitability in 2023 and 2024, with return on equity (ROE) estimated to reach 8.0% and 9.5%, respectively. The report also forecasts premium growth of 7.5% in 2023 and 5.5% in 2024 1.
In terms of inflation projections for 2024, private sector experts expect inflation to drop below 2.5% in 2024, according to the Federal Reserve Bank of St Louis. Goldman Sachs projects core PCE inflation will fall to around 2.4% by December 2024 2.
The Congressional Budget Office expects inflation to nearly hit the Federal Reserve’s 2% target rate in 2024, as overall growth is expected to slow, and unemployment is expected to rise into 2025 3.
While higher inflation can lead to higher insurance premiums, the report by Swiss Re Institute Research suggests that the US property and casualty industry has been taking inflation into account in its underwriting actions. The report also notes that inflation itself is easing and gains from reinvesting the portfolio at higher yields are accruing 1.
As inflation continues to increase without a clear end in sight, businesses and consumers are reevaluating their financial plans for the year. It may seem counterintuitive to put money towards outsourcing during an inflationary period but doing so can help you save money by freeing up time to concentrate on other important tasks.
As a result of inflation, businesses may experience greater costs for goods and services, higher employee compensation, and difficulty retaining talented staff. By eliminating the need for additional workers and establishing predetermined pricing for administrative services, outsourcing business services can help reduce these negative effects.
For a startup or new company wanting to grow during inflation, outsourcing administrative work is the first step. Businesses can concentrate on their core operations while outsourcing these chores to another company like Staff Boom, allowing them to focus on other areas of their business.
You can reduce the size of your team through outsourcing without having to make significant investments in personnel and equipment. As a result, it’s a great option for startups and small businesses. It’s also a great choice for businesses that want to expand their personnel as needed without having to make big capital commitments.
Outsourcing insurance processes can help insurance companies to focus on their core activities and enhance their efforts on value-driven activities such as underwriter reports. According to a survey, the global insurance business process outsourcing market is expected to grow at a CAGR of 8.8% and may cross $9.8 billion by 2028 5.
While outsourcing can help reduce costs, it is not a guaranteed solution to mitigate the effects of inflation. Inflation can lead to higher insurance premiums, but the Swiss Re Institute Research report suggests that the US property and casualty industry has been taking inflation into account in its underwriting actions. The report also notes that inflation itself is easing and gains from reinvesting the portfolio at higher yields are accruing 6.
Outsourcing is not only a resource for startups and smaller firms but can lower the overhead of larger companies, therefore increasing their EBITDA. Larger companies in the insurance industry can increase their productivity by incorporating an outsourcing company. The transfer of repetitive tasks to an outside team allows licensed talent to get back to the tasks that make the company grow financially.
If you’re considering outsourcing your customer service, be sure your outsourcing partner adheres to the same principles and philosophies as you do. At Staff Boom, Smart Business means putting our clients’ financial demands and employees’ needs first. We are using our knowledge and resources to work locally on societal problems. Our company develops a culture that gives its employees the chance to improve their health, security, education, and career prospects.
Call Staff Boom today to speak with one of our representatives about how our solutions can benefit you and your company.
Chief Revenue Officer
Joe Overley is a Chief Revenue Officer at Staff Boom. Joe is an accomplished executive who possesses exceptional leadership skills and a proven track record in sales. He has a unique ability to establish strong relationships with people and inspires and motivates them to improve their relationships, sales, training, and knowledge. Joe’s unwavering commitment to success and his approach to staff training and development enabled him to achieve rapid advancement in the insurance industry. Before his current position, Joe joined Staff Boom as an Account Executive and then transitioned to be the Director of Sales. In his previous job, Joe was promoted to the district manager position within the first year of joining the company and subsequently became a regional sales manager, ultimately attaining the Vice President role within five years. Joe was responsible for several critical functions, including developing the sales process, sales training, and management development. He also oversaw the organic expansion of brick-and-mortar offices, the web sales environment, the agency call center, and quality control procedures for Northern California and Nevada.
