Trends, Challenges and Opportunities in the P/C Insurance Industry in 2017 and Beyond

This PowerPoint presentation reviews anticipated trends, challenges and opportunities in the property/casualty P/C industry in 2017 and beyond. The report discusses the annual changes of net premium growth for all P/C lines in the second quarter and predicts a 2.9 percent change in 2017 from 3.0 in 2016. It discusses how underwriting results have come under pressure because of the increases in both the accident rate and the size of the average auto insurance claim. The report finds investment performance to be a critical factor for industry profitability. The presentation includes interest rate forecasts from 2016 to 2021 and notes that a full normalization of interest rates is unlikely until 2019, more than a decade after the onset of the financial crisis. Other topics included in this report is a review of auto passenger trends, how politics affect industry profitability, and how the strength of the U.S. economy will greatly influence insurer exposure base.