Annual Meetings-Outlook for the P/C Insurance Industry and the Performance of the Inland Marine Line

Pdf Summary

The document presented by Steven N. Weisbart, Ph.D., provides an overview and outlook for the Property and Casualty (P/C) Insurance Industry with a focus on the Inland Marine class of business. In 2013, the P/C industry experienced its best year since the post-crisis era, with improved performance attributed to lower catastrophic events and firming markets.<br /><br />Key highlights from the document include sustained growth in written premiums, a 15th consecutive quarter of year-over-year premium growth, and improved underwriting gain in 2013. The industry's net income after taxes showed substantial growth, with a return on net worth of 10.3% in 2013.<br /><br />The overview also covers the profitability and growth trends in the Inland Marine class of business, highlighting return on net worth comparisons and underwriting profits by state and region. The document touches upon the impact of economic growth on the exposure base for Inland Marine insurance.<br /><br />Furthermore, the document delves into the outlook for the P/C industry, including construction, manufacturing, energy, and the medical sector. It also analyzes natural disaster losses in the US, discussing thunderstorm and winter storm losses. The investment performance and the influence of low yields on underwriting and pricing are emphasized, along with a snapshot of bond maturities in the industry from 2003 to 2013.<br /><br />The presentation concludes with an overview of U.S. Treasury note yields, the distribution of bond maturities in the P/C insurance industry over the years, and a note of appreciation to the audience. The detailed analysis provides insights into the industry's financial health, growth prospects, and the challenges and opportunities it faces in a dynamic economic landscape.

Asset Caption

Presented by:
Dr. Steven Weisbart, CLU, Senior Vice President and Chief Economist, Insurance Information Institute

Keywords

Property and Casualty Insurance Industry

Inland Marine class of business

Written premiums

Underwriting gain

Net income after taxes

Return on net worth

Economic growth impact

Natural disaster losses

Investment performance

Bond maturities