Personal Lines P-C Insurance Markets: Trends, Challenges & Opportunities for 2012 & Beyond

This PowerPoint report, presented by Robert Hartwig, president of the Insurance Information Institute, provides an overview and outlook for the auto and homeowners insurance markets in the U.S. and by state. Reporting on average premiums and expenditures, the presentation shows that growth trajectories differ substantially by line, by state and over time. For the present, rates are a bigger driver than exposure in personal lines. The presentation also looks at catastrophe loss trends in the U.S. and globally, noting that although 2011 will rewrite catastrophe loss and insurance history it is not certain whether losses will turn the market. Another section provides a reinsurance market overview and outlook. Other sections discuss cyclical drivers in personal lines, focusing on the role of losses and reserves in the underwriting cycle; private passenger auto performance; and distribution trends. A P/C financial overview and outlook also highlights the role of cyclicality, including profitability; premium growth; capital, capacity and financial strength; underwriting performance; and investment performance. The presentation concludes with discussions of the impact of the financial crisis, recession, and recovery on P/C insurers and the current regulatory environment.