Annual Meetings-2018 Outlook for the P&C Insurance Industry

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The document delves into the financial landscape of the Property/Casualty (P/C) insurance industry, highlighting its resilience amidst challenges like catastrophic losses and pricing pressures. It discusses the fluctuating profitability and Return on Equity (ROE) figures in the industry, influenced by events such as natural disasters. Inland Marine insurance has demonstrated consistent profitability and growth in direct written premiums since 2010. The impact of political factors on profitability, investment challenges due to low interest rates, and trends in treasury securities and corporate bond yields are also explored.<br /><br />The industry faces challenges from CAT losses affecting rate pressures and profitability, with economic growth and CAT losses being key drivers in the industry. The document notes rational price competition, faster growth in personal lines compared to commercial lines, and mergers and acquisitions in the industry. Factors like tax reform, infrastructure investments, and trade disputes are identified as influences on insurers. The importance of adapting to technological advancements, addressing talent shortages, and embracing innovation to navigate changing economic influences and emerging trends are emphasized. Insurers are focusing on InsurTech for distribution and pricing strategies and adopting inclusive approaches to talent acquisition.

Asset Caption

Presented by:
Robert Hartwig, Ph.D, CPCU

Keywords

Property/Casualty insurance industry

catastrophic losses

pricing pressures

Return on Equity (ROE)

Inland Marine insurance

direct written premiums

political factors

investment challenges

treasury securities

mergers and acquisitions