Economic And Insurance Market Conditions: An Overview And Outlook In The Age of Uncertainty

This PowerPoint report, presented by Robert Hartwig, president of the Insurance Information, before the Aegis 2012 Policyholders’ Conference, notes that 2012 is the first year since 2005 that economic perceptions and reality in the U.S. will be positive and there are potentially significant benefits for property/casualty (P/C) insurers and the energy sector. The presentation offers an economic outlook and insurance industry predictions for 2012. P/C insurance exposures are expected to grow modestly, while personal and commercial exposure growth is certain to be the strongest since 2004-2005. However, restoration of destroyed exposure will not be completed until mid-decade. Concerning the energy sector, the report finds that demand for electricity in the U.S. will continue rise despite the sluggish economy and the demand for energy insurance products will rise and adapt to meet changing needs. Other sections focus on global financial and economic instability; performance by segment; surplus, capital and capacity; reinsurance market conditions; renewed pricing discipline; and investments. The presentation concludes with a U.S. insured catastrophe loss update.