A great majority of insurance executives think 2006 will outperform last year financially, according to a survey conducted by the Insurance Information Institute.
Among respondents to a survey at the Joint Industry Forum earlier this week in New York, 79 percent expect this year to be more profitable than last year in terms of the combined ratio.
Last year was only the second time in more than 25 years that the insurance industry's combined ratio came in under 100, indicating an underwriting profit.
Broken down by lines, 56 percent of respondents said they think the homeowners line will see a greater profit, but 54 percent do not expect to earn a greater return in the auto line.
Executives remained pessimistic when it came to commercial lines, with 74 percent believing there would be no improvement in the workers' compensation sector, while 54 percent did not see any overall improvement in the commercial arena.
Eighty percent of the respondents believe the industry will survive current litigation spawned in the wake of Hurricane Katrina threatening the industry's exclusion of flood risk in homeowners' lines.
"Homeowners' insurance does not cover flooding, including but not limited to flooding as a result of high tides or storm surges," said Robert Hartwig, chief economist for the Insurance Information Institute.
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