American insurance executives aren’t expecting much in the way of underwriting profits for their companies over the next three years, according to consultants KPMG.

Its annual survey of the US industry shows 64% of executives see just a moderate ability to lift underwriting profit while 27% describe their chances as weak.

The executives were more bullish on their companies in general terms, with 48% expecting them to perform ahead of market expectations in the coming year compared with 22% this time last year.

While 31% say they don’t anticipate the need to raise more capital over the next 18 months, the scarcity and high cost of capital was cited as the third-largest barrier to overall economic recovery – behind unemployment rates and increasing regulatory intervention.

Looking at the next three to five years, 30% say the inadequate pricing of insurance products looms as the most significant challenge followed by credit risk at 23%.

Product innovation (17%), customer focus (15%) and redeploying capital (14%) are seen as the most important considerations for future growth.