|Targeted News Service|
Leaders of the property/casualty insurance industry believe
In addition, 74 percent of leaders think the federal government is interested in further expanding its regulatory oversight of insurers. With the budget mess, only 23 percent of executives in the property/casualty industry believe the U.S. economy for the New Year is finally "on the right track".
"As the economy continues its recovery, exposures will continue to grow, implying further increases in insurance premium volume," said Dr.
Broken down by lines of insurance, 59 percent of respondents believe there will be an improvement in both personal auto and homeowners lines. While 68 percent of respondents expect an improvement in commercial lines, 61 percent do not expect an improvement in workers compensation. Seventy-four percent of respondents believe that premium growth will be higher in 2013; 21 percent believe it will remain flat; and only five percent believe it will be lower. In terms of capacity, as measured by policyholders' surplus, 71 percent of respondents expect it to increase; 18 percent believe it will remain flat; and 11 percent believe it will decrease. As compared with 2012, 62 percent of respondents believe the combined ratio will be lower in 2013. The combined ratio is a percentage of each premium dollar a property/casualty insurer spends on claims and expenses. The combined ratio improved by 8.9 percentage points to 100.9* percent in nine-months 2012 from 109.8 percent in nine-months 2011. A combined ratio over 100 means that claims payments plus expenses exceeded insurance premiums. One way to lower expenses is by consolidation; 54 percent of respondents expect an increase in consolidation among insurers and reinsurers. In the area of torts, 51 percent of respondents believe that tort trends will deteriorate in 2013; 44 percent believe it will remain the same; and only five percent believe it will improve. On the investment side, 64 percent of industry leaders expect an "up" year in the equity markets in 2013 (but for the industry as a whole, equities constitute only about 15 to 20 percent of invested assets). About 70 percent of invested assets are in bonds. Industry leaders were asked whether they expect interest rates to rise. Sixty-two percent think they will remain flat and 38 percent think they will rise; none of the respondents expects interest rates to fall.
The sponsoring organizations of the Forum represent a broad range of insurance interests and audiences. They include:
For the poll questions and full results, go to 2013 Property/Casualty Insurance Joint Industry Forum Questionnaire
- Includes mortgage and financial guaranty insurers. Excluding these insurers, the combined ratio was 100 percent for nine-months 2012 from 108.1 percent for nine-months 2011. The I.I.I. has a full library of educational videos on its You Tube Channel. Information about I.I.I. mobile apps can be found here. THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.
TNS-LE 130117-JF78-4169836 StaffFurigay
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