The Commercial P/C Insurance Industry in the Aftermath of the "Great Recession"

This PowerPoint report, presented by Robert Hartwig, president of the Insurance Information Institute, at the National Association of Mutual Insurance Companies’ Commercial Lines Underwriting Seminar, focuses on how the recent financial crisis and economic turmoil will affect the property/casualty (P/C) insurance industry in general and commercial lines in particular. Slides reveal how regional differences are significantly impacting P/C markets, with massive job losses sapping the exposure of commercial P/C lines. Signs that the economic recovery is underway are laid out, including the end of GDP shrinkage, the pace of job losses that is slowing and major stock market indices that are on the rebound. Eleven major industries that will need insurance solutions over the next decade are identified, and a discussion of concerns that stimulus spending and monetary policy could have an inflationary effect is included. Reignited inflation is a major preoccupation for insurers, who fear mounting pressure on claim cost severities due to a rise in the cost of settlements, rate inadequacy and number of other factors identified in the presentation. The report discusses at length threats and issues facing P/C insurers through 2015, including terrorism insurance issues, of particular concern to commercial lines insurers. Slides on underwriting performance include commercial multiperil, commercial auto, inland marine and workers compensation combined ratios from 1993–2010 (forecast).