Trends, Challenges and Opportunities in P/C Insurance Markets: Focus on California

This PowerPoint presentation explores the trends, challenges and opportunities in property/casualty insurance for 2016 and beyond. Underwriting performance is presented, as well as the state of insured catastrophe losses, claim trends in private passenger insurance, economic and demographic considerations. The presentation begins with a discussion of industry financials from 2014 and into 2015, and then focuses on California. P/C insurer profitability in California is above that of the U.S. overall over the past decade. Thanks to a dearth of major catastrophes and pricing discipline, results have been fairly strong and stable in recent years. Although results have been fairly strong and stable in recent years, profitability of auto and homeowners lines varies tremendously over time and across states. Auto and homeowners underwriting performance has exhibited periods of both stability and volatility. The report also looks at insured catastrophe losses for 2015, claim trends in private passenger auto insurance, and growth drivers in personal lines is also presented. The report closes with some thoughts on the future, including the on-demand economy and the Internet of Things.