Customer expectations and stagnating market conditions have disrupted the financial services sector, including P&C insurance carriers. Says Ernst and Young:
There was a time when financial services companies enjoyed all the benefits of a stable business environment and customer loyalty. Then came the financial crisis, which undermined confidence in traditional providers, and the rise of disruptive technologies, which led to a surge in Internet adoption and a newfound trust in online competitors. The result is an industry facing many uncertainties, such as fickle customers, disruptive technology and nontraditional competitors.