P/C Insurance Industry Overview And Outlook

This PowerPoint report provides the property/casualty (P/C) insurance industry overview and outlook for 2016. The report notes that 2013-2015 were three good consecutive years for the industry and predicts that the trend might continue into 2016. In 2015 the P/C Industry net income after taxes was $56.6 million. The history of profitability peaks and troughs in the P/C Insurance Industry suggests that the next ROE peak will be in 2016-2017. However, the report found that to be unlikely. The presentation predicts that there will be modest economic growth from 2016-2017. Since the Great Recession, even 3 percent real growth (at an annual rate) in a quarter has been unusual. Through 2016 Q2, it happened only 7 times in 28 quarters—and not once in the most recent 7 quarters. The report examines several factors influencing personal lines of insurance, assesses inflation and claims and concludes with a review of employment trends.