The property/casualty insurance market has shown positive returns in 2013 and 2014 according to the Insurance Information Institute, and the trend is expected to continue through at least the end of the year, keeping insurance agents on the positive side of profits and business development.
In a recent Insurance Journal article, “Various Factors Contributing to Stability in Property/Casualty Insurance Market,” contributors explain that the federal terrorism risk insurance backstop is expected to be reauthorized by Congress and the current stability in the property/casualty insurance market is, therefore, expected to continue through 2014.
There are a variety of factors influencing this positive trend, including low cat losses, a strong equity market and an improved economy. Without any major interruptions in the form of a catastrophe, experts predict the stability of this insurance market could hold strong into 2015.
There is a renewal of the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA or TRIA) in the works as well. Many industry experts believe this will be renewed with some changes as it is heavily backed by the Senate. This particular act has provided unambiguous success for many, but was designed to be temporary. Renewal could have significant benefits for many in the insurance industry.
The industry as a whole is well-capitalized and able to handle more risk than before. Insurance has increasingly become a key component of the nation’s economic recovery and insurance professionals have seen the impact in business growth and increased profits.
In today’s economy, it is a good time to be an insurance buyer as terms and conditions are in a good place, there is stability in pricing and there has been a significant influx of capital into the market. However, with all of the new capital and the “experimental” nature of alternative capital, insurance agents must still be cautious of what they and their clients are investing in.
The role of the broker has become increasingly important in recent years as well as they are corresponding weekly, if not daily, with clients. Brokers are not only part of the buying transaction, they are also tasked with looking at and assessing risk, making their value significant in the insurance industry. They work closely with underwriters to ensure the best possible insurance plans are in place for clients and that all aspects have been considered.
Overall, the insurance industry is experiencing a sense of stability in property/casualty insurance. Agents must capitalize on this properly to remain successful through the end of 2014 in this market. To learn more, visit http://www.insurancejournal.com/news/national/2014/05/29/330445.htm
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