Is the World Becoming a Riskier Place? P/C Insurance Industry in the Age of Uncertainty

This PowerPoint report, presented at the Insurance Council of Texas Annual Symposium, by Robert Hartwig, president of the Insurance Information Institute, discusses recent world events and their implications for insurance and risk management. The presentation includes a summary of property/casualty financial performance, with a focus on Texas markets (slides provide an analysis by line and comparisons with neighboring states). A further section reviews global and U.S. catastrophe loss developments and trends. Another section reviews the four criteria necessary for the insurance market to turn and the current status of each. They are: a sustained period of large underwriting losses; a material decline in surplus/capacity; a tight reinsurance market; and renewed underwriting and pricing discipline. The presentation concludes with a discussion of other factors contributing to the underwriting cycle, including the investment environment, the tort/casualty environment, inflation and economic growth.