Confidence of insurance execs high: survey

A survey of Canadian and U.S. insurance executives shows confidence in the industry is at its highest level in that last three years. The annual “Insurance Industry Outlook” survey by National Marketing Services shows confidence in the primary sector at 7.2 (out of 10), and also at a two-year high for reinsurers.
Most indicators of confidence were also up this year, including confidence in the stock market, which showed the greatest increase since 2003, as well as executives’ confidence in their ability to write new lines of business.
At the same time, insurers are less confident about the feelings of investors, with 51% saying investor confidence will remain the same as last year.
Topping the list of industry concerns is price, which beat out last year’s top issue, terrorism. Nonetheless, confidence in the ability of the U.S. to contain global terrorism dropped to 6.0 from 6.1. In 2004, insurance executives think maintaining growth, pricing and competition will be the top issues, as executives predicts premiums increases will lower across the board, and rates may even decline in some areas.
Insurers want to see legislators deal with tort reform, with national security, medical malpractice and workers’ compensation following in priority.
One of the biggest changes is in the area of public relations. Just 13% of insurers say the industry is viewed positively, and the blame for this is aimed at the media, which is listed as a foe by 82% of insurers, up from 47% in 2003.
On the liability front, rates in this line are expected to see the biggest increases, and mold claims are expected to grow in 2004, while asbestos claims hold steady.
The full study, being offered free of charge for the first time, is available at www.nationalmarketing.com.