Industry changes have only just begun, according to Allstate Chairman Edward M. Liddy. Liddy, who spoke at a recent AM Best conference in California, identified some key changes that will drive industry going forward.

Of these key changes, I was most struck by the following:

• The continued move toward "tiered pricing," which would give insurers the ability to differentiate between their best and worst risks, and price them accordingly.
• A larger emphasis on marketing and advertising. Branding and communications can help give insurers the edge when they can't compete on price alone.
• Servicing aging Americans. "This places a premium on the trusted advisor role," said Liddy.
• Providing greater consumer choice by increasing the flexibility of insurance policies.
• Using technology to enable distribution and compete locally.

Judging by the overview, Allstate's getting the idea. I'm curious to see if competing insurers will act nimbly enough to do just that—compete.

Check out the full story courtesy of A.M. Best or Insurance News Net (article access is subscription-based; apologies!)

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