Overview and Outlook for the P/C Insurance Industry: Focus on California & US Markets

This PowerPoint report, presented by Robert Hartwig, president of the Insurance Information Institute, before the Independent Insurance Agents & Brokers Association of California, provides a review of the U.S. property/casualty (P/C) insurance market, with a focus on California. A financial update provides that latest statistics on profitability, growth and underwriting performance. A lengthy section shows profitability and growth in the California P/C insurance markets and provides an analysis by line and for nearby state comparisons. In the decade from 2003 to 2012 the return on net worth for all lines of insurance in California was profitable and above the U.S. and regional averages. Another section discusses investments, explaining that investment performance is now a key driver of profitability and that depressed yields will necessarily influence underwriting and pricing. Other sections include a discussion of alternative capital and reinsurance markets, a growth analysis by state and business segment, reviews of the construction industry and energy sector, a look at labor markets trends and a review of the workers compensation operating environment.