… but insurers are storming through the downturn
US property and casualty insurers are riding out the global financial crisis with their operating models intact and are in good stead to survive the storm.
Insurance Information Institute (III) President Robert Hartwig says insurers’ superior risk management models and their orderly transfer of risk from policyholder to insurer have enabled them to continue paying claims and sell and renew policies.
He told a hurricane conference in Texas that despite financial market turmoil and a deep recession, US insurers earned $US2.4 billion ($3.34 billion) in net income last year.
This was down $US60.1 billion ($83.7 billion) or 96.2% from the previous year, but Dr Hartwig says this was largely due to the poor investment environment and higher losses, including $US26 billion ($36 billion) in insured catastrophe losses.
Texas accounted for about 40% of the total insured catastrophe losses last year.
Insurance Information Institute (III) President Robert Hartwig says insurers’ superior risk management models and their orderly transfer of risk from policyholder to insurer have enabled them to continue paying claims and sell and renew policies.
He told a hurricane conference in Texas that despite financial market turmoil and a deep recession, US insurers earned $US2.4 billion ($3.34 billion) in net income last year.
This was down $US60.1 billion ($83.7 billion) or 96.2% from the previous year, but Dr Hartwig says this was largely due to the poor investment environment and higher losses, including $US26 billion ($36 billion) in insured catastrophe losses.
Texas accounted for about 40% of the total insured catastrophe losses last year.