Last week’s edition of Love Actuary, by JP Morgan, suggests turnarounds in P&C take time, there is no such thing as a very quick fix.
The report states that P&C can be a cynical industry, even in the most vanilla products such as Motor Insurance, concluding that turnarounds take 2 to 3 years on average.
There are generally two major issues to correct in a turnaround. The first is the front book, which typically involves pricing improvements or reducing exposure. The second is the back book which can involve reserving actions to improve the adequacy of reserves.