Claims News Service, Jan. 11, 11:57 a.m. EST- A survey conducted by the Insurance Information Institute at its 11th annual Property/Casualty Insurance Joint Industry Forum revealed the opinions and expectations of insurance industry leaders on many topics, including the Terrorism Risk and Insurance Act, wind vs. water litigation, and the industry's financial outlook.
According to I.I.I., 89 percent of respondents believe that Congress will move quickly to continue TRIA for a significant period. Respondents also expressed their belief that insurers will see a victory in wind vs. water suits. Eighty-one percent are convinced that litigation will be resolved in favor of the insurance industry.
"The need for a public/private partnership continues," said Dr. James Valverde, I.I.I vice president of Economics and Risk Management, in regards to TRIA. "The benefits are many, including promoting stability in the financial markets and to focus the federal role on those risks the private sector is not able to assume."
The survey also polled attendees on other issues, including National Catastrophe Insurance and the industry's financial outlook.
A combined ratio is a percentage of each premium dollar a property/casualty insurer spends on claims and expenses, and is estimated at 94.3 for 2006. Seventy-five percent of respondents believe the combined ratio will be higher in 2007.
"Looking forward to 2007, the year holds the potential to give rise to a 3-4 point deterioration, owing largely to falling rates and higher catastrophe losses," said Robert Hartwig, president and chief economist of the I.I.I. "Still, we can expect to see strong results, assuming 'normal' catastrophe activity. Bear in mind, climatologists are predicting a 40 percent increase in hurricane activity relative to a 50-year average."
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