The industry's groundhogs popped their heads out long enough to spot their own shadows this month and predict that the market will keep softening while profitability deteriorates not just in 2007, but into next year as well.
Indeed, the consensus among those surveyed by the Insurance Information Institute for its annual Groundhog Day forecast is that while the industry is set to enjoy its most profitable year since 1936, the next two years are expected to see a slowdown in profit and premium growth.
"A peak in industry profits but stalling premium growth is a clear reminder of the cyclical nature of the property-casualty business, and the fact that the industry's financial fortunes are influenced by a number of factors," the Institute said.
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