Bruising competition may be a far greater risk for insurers than problems with subprime mortgages are.
Insurance company executives gave that assessment here this week when they participated in an informal survey during an insurance industry conference organized by KPMG.
Only 5% of the 270 survey participants identified subprime mortgage risk as the most significant risk facing the industry.
That was up from none in 2006, when KPMG did not think to ask about subprime risk.
“Pricing risk” – the risk that efforts to make sales will lead underwriters to set prices that are too low – was by far the most popular answer.