Specialization vs Diversification in Insurance

Both specialization and diversification can be successful strategies in the insurance business. In fact, diversification is one of the fundamentals of our business because it helps spread risk, which allows for the shifting of risk for reasonable pricing. Diversification can be accomplished through a variety of approaches, including line of business, product line, geographic concentration and distribution diversification strategies. Certainly no one would argue that diversification is not imperative in writing catastrophe exposed property insurance. However, specialization is also a…

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