Generally speaking, the economy is more resilient than most pundits presume but nevertheless will continue to face prolonged stagnation in the next couple of years. The downtrend in economic indicators, along with shrinking investment income projections are chief conditions guiding the latest edition of Conning's “Property-Casualty Forecast & Analysis” report.
In the forecast, which projects P&C industry growth and performance from 2011-2013, the Hartford, Conn.-based firm offers a decidedly “gloomy” view for insurers. An overriding concern is that after the compression of revenues in recent years, many anticipated a rebound in both the economy and in interest rates, neither of which occurred.
“Not only has economy faltered, but concern about the economy has increased,” explained Clint Harris, analyst at Conning Research & Consulting. “The government has been trying to recharge the U.S. economy by keeping interest rates low enough to encourage investment. The consequence of all of this is that bond yields have gone lower, and that is a significant driver in revenue for insurers.”
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
