Forget catastrophes, regulation is top concern for U.S. insurance executives: Lloyd’s

Regulation is the number one challenge facing the U.S. insurance industry despite the financial burden associated with the elevated number of catastrophes in 2011, a Lloyd’s survey of insurance executives in April reveals.

Lloyd’s canvassed 100 insurance executives at the Risk and Insurance Management (RIMS) conference in Philadelphia last month. Executives were asked to assess corporate risk and how the current economic landscape and recent events around the world have shaped the industry’s outlook for 2012.

Almost a third of respondents cited regulation as their top concern. But the vast majority (76%) felt that few of the legislative proposals and regulatory initiatives related to insurance would receive much attention during the upcoming U.S. election cycle.

“Interestingly, given that 2011 was the second worst year on record for natural catastrophes, generating industry-wide claims of over $107 billion, only 21% of the respondents view natural catastrophes as the greatest challenge they will face in the year ahead,” Lloyd’s reported.

More than half of the executives anticipated a decrease in capacity and an increase in prices for catastrophe coverage in 2012. Only 20% felt the industry is strong enough for capacity to remain robust, while 15% feel it is too soon to tell.