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Latest Insurance Studies
THE FINANCIAL CRISIS AND THE FUTURE OF THE P/C INSURANCE INDUSTRY: CHALLENGES AND OPPORTUNITIES AMID THE ECONOMIC STORM
by Robert Hartwig
Insurance Information Institute, special report; 10/05/2009
This PowerPoint report, presented by Robert Hartwig, president of the Insurance Information Institute, at the State Insurance Trade Association’s Annual Conference, focuses on what the financial crisis and recession mean for the property/casualty insurance industry’s exposure base, growth prospects and investments. All industry financial statistics have been updated to reflect recently released final data through the first half of 2009. Sections review these three key points, including a regional analysis of exposure and growth. The report also includes slide discussing the implication of economic trends on commercial and personal lines, regulatory reform, financial strength and ratings, the key differences between insurer and bank performance during the crisis; profitability, premium growth, underwriting performance, financial market impacts, merger and acquisition activity; capital and capacity, and catastrophe loss trends. In summary the presentation concludes that the P/C insurance industry has weathered the financial crisis better than most financial services segments, lingering effects of soft market and weak economy have kept commercial premium growth in negative territory, recovery of the economy in 2010 should begin to help commercial insurers realize exposure growth, growth trajectory is likely to be slow and uneven across states, investment performance should improve modestly but disciplined underwriting gains in importance and the industry can be profitable even in period of slow growth. The full presentation can be accessed on the I.I.I. web site at http://www.iii.org/media/lateststud/index.html
