In its recent 2009 Insurance Outlook – U.S. Property and Casualty report, Ernst & Young (E&Y) offered some encouraging words. The company noted that although the P&C industry suffered what it termed “significant isolated damages” recently, it also declared it had suffered “no serious general impairment.”

While acknowledging that 2009 is not without risks from continuing volatility in investment and underwriting performance, E&Y also said this may be the beginning of a “transitional if not transformational environment” in insurance. Citing the need to find opportunities in a challenging landscape, the company identified what it called “seven key actions” for 2009. Here is the list, along with selected excerpts from the report:

1. Redirect focus on premium pricing. In most P&C segments, pricing levels have been soft for the past four years. Early indications of pricing negotiations give strong support to at least a firming of the market in most lines. Additionally, losses in directors and officers (D&O) and errors and omissions (E&O) products will certainly result in significant price increases in those market segments.