Although the CEOs of four global insurers are seeing some green shoots of economic improvement in areas like new housing starts, discretionary spending and the gross domestic product growth, they predict a long, slow recovery and a soft insurance market cycle that could extend well into the decade.
The executives–Michael Hughes, president, Safeco; Tom Motamed, chairman and CEO, CNA; Michael LaRocco, president and CEO, Fireman's Fund; and Liam McGee, chairman and CEO, The Hartford– addressed wide-ranging topics, including the economy, talent recruitment and the soft market, in a panel discussion at last week's Big "I" legislative conference and convention in Washington, D.C. Big "I" President and CEO Bob Rusbuldt led the discussion.
The CEOs agreed that a quick economic recovery was unlikely. With GDP levels hovering around 2.5 percent, and consumer spending down to around 40 percent from a high of around 60 percent before the recession, any recovery that happens will be slow, "with some volatility on the way," said The Hartford's McGee. Underemployment also is a problem that could add another 10 percent to 15 percent to the current figures of 9.7 percent, he added.
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