Soft market conditions, low interest rates and regulatory oversight were among the issues Tim NeCastro, President and CEO-designate of Erie Indemnity, discussed at the 2016 PCI Meeting in Dallas. He expresses concern about the “strident tone” from Federal regulators and the broad brush targeting the banking and financial services industry unfairly including the insurance industry.
Mr. NeCastro says the Erie’s success is due in part to the relationship the carrier has with independent agents. He says agents appreciate the stability and consistency Erie has shown over 90+ years in business, fending off “fly-by-night” carriers that try to be all things to all people.
As CEO, Mr. NeCastro sees “keeping pace with the marketplace” among his top challenges. He sees the insurance value chain being “dis-intermediated” by new entrants and technology. As an end-to-end insurance organization, Erie is being challenged across all aspects of its service model.
Erie is a “hi-touch/handshake” company, but with buying habits changing and the use of online shopping, Mr. NeCastro says Erie will look to capture online opportunities. He notes that millennials like to have personal relationships as well. Diversifying its agency force will help Erie take advantage of opportunities in the marketplace. Erie wants to attract millennials through independent agents who look more like the customer, while not abandoning more experienced agents, while not abandoning more experienced agents.
For more from the 2016 PCI meeting in Dallas, visit the WRIN.tv On Demand Library.