Global Insurance and Reinsurance: Trends, Challenges and Opportunities

This PowerPoint report, presented by Robert Hartwig, president of the Insurance Information Institute, focuses on trends, challenges and opportunities for the global insurance and reinsurance industries. The presentation notes that the property/casualty industry should see modest growth, with faster growth in emerging markets relative to developed markets and with overall exposure growth tied primarily to overall GDP growth. Rates should remain in positive territory and underlying loss cost trends will remain manageable as the insurance and reinsurance industries are very well capitalized. Primary insurers are benefiting from falling reinsurance pricing and alternative capital while traditional reinsurers are facing challenges from the continued entry of new capital and accumulation of “organic” capital. The report also reviews regulatory and legislative concerns including TRIA, systemic risk and the Federal Insurance Office. A life insurance/annuity outlook discusses persistently low interest rates as a major concern. The section notes that the U.S. market is mature and penetration rates are suffering, with penetration of younger demographic groups at a 50-year low. However, group sales are benefiting from increased hiring. The section concludes with a discussion of regulatory risks.