1 / 10

Property and Casualty

Property and Casualty. Insurance Marketplace Update November 2009 Tim de Jonge BComm, CIP, CRM Account Executive Aon Global Energy. Agenda. Marketplace Overview Industry Results ― 2008 Industry Forecast ― 2009-2010 Line of Coverage Review Property Casualty. Rates Insurable losses

georgiab
Download Presentation

Property and Casualty

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Property and Casualty Insurance Marketplace Update November 2009 Tim de Jonge BComm, CIP, CRM Account ExecutiveAon Global Energy

  2. Agenda • Marketplace Overview • Industry Results ― 2008 • Industry Forecast ― 2009-2010 • Line of Coverage Review • Property • Casualty

  3. Rates Insurable losses Investment environment Global economic recession Property losses ― risk and natural catastrophe events Industry Surplus YE 2008 = $438 billion, -16% from $518 billion YE 2007 Net Written Premium -1.4% Treaty or portfolio reinsurance ― 2009 increases 10%-20% 2008 combined loss ratio = 105.1% 2008-2009 Insurance Marketplace Overview

  4. Insurers overall capital losses 2008 reflects developments in financial markets and insurers’ need to write-down investments that became impaired as a result of the recession, foreclosures, and the crisis in the financial system • S&P 500 -38.5 %, • NASDAQ & NYSE composite indexes -40 % • ISO estimates $26.9 billion in pretax capital losses on impaired investments. • 1Q 2009 S&P 500 -11.7 %

  5. Industry Results 1st Half of 2009 Resilience demonstrated: • Record catastrophe losses • 100% combined loss ratio • 9.5% return on surplus • Sluggish growth in net written premium: 1.3% • Profitability returns

  6. 2010 — Forecast • Small underwriting profit • Net written premiums growth of up to 5% • Hardened Property market • Difficult market for coastal/cat • Spillover into Casualty? • Demand for underwriting discipline to lift returns • Combined Ratio of under 100%

  7. Property — Average Rate Change

  8. Property Capacity Industry surplus lower than a year ago, particularly in Nat/Cat areas; Capacity appears adequate and stable • Market Outlook: The Remainder of 2009 and Beyond • Upward rate pressure through the active Atlantic Storm Season • Modest downward pressure on rates in the late fourth quarter and into 2010

  9. Primary Casualty — Average Rate Change

  10. Casualty Capacity • Competition remains very strong in the primary casualty marketplace • Few changes in the number and quality of carriers actively writing large primary casualty business with at least 12 viable markets competing for this business, • Excess casualty capacity is at record levels • Significant new and additional excess casualty capacity entering the marketplace in the last 14 months. • Casualty insurance carriers continue to try to maintain incumbent relationships and aggressively pursue new business opportunities.

More Related