Carrier Management’s Post

According to the Insurance Information Institute’s latest Insurance Economics Outlook, the economic drivers of the U.S. property/casualty insurance industry are growing faster than the nation’s Gross Domestic Product and are expected to gain further momentum in the event of Federal Reserve monetary rate cuts https://lnkd.in/gG8i3Hjm

Outpacing GDP: How the Insurance Sector Leads Economic Growth 📈💼 Imagine an industry quietly accelerating past national economic averages. That's the story of the U.S. property/casualty insurance sector, a true bellwether of economic resilience. As per the latest findings from the Insurance Information Institute (Triple-I), this sector isn't just matching the U.S. GDP growth—it's surpassing it! 2024 brings a promising outlook, with Triple-I projecting the P/C insurance sector to increase by 3.4 percent—outperforming the Fed's GDP forecast by a notable margin. It's a testament to the sector's strength and the potential for further economic gains if the Fed opts for interest rate cuts. These are more than just numbers; they represent real growth opportunities across essential areas like housing and auto sales. As we navigate through varying economic pressures, from geopolitical risks to monetary policies, it's clear that the P/C insurance industry stands as a robust force within our economy. What does this mean for investors, policyholders, and the economy at large? It signifies stability, confidence, and a drive toward future prosperity. As we lean into the rest of 2024 and beyond, watch this space—the promise of continued growth in the insurance sector may well signal broader economic successes. #InsuranceGrowth #EconomicOutlook #FutureTrends

Outpacing GDP: How the Insurance Sector Leads Economic Growth 📈💼 Imagine an industry quietly accelerating past national economic averages. That's the story of the U.S. property/casualty insurance sector, a true bellwether of economic resilience. As per the latest findings from the Insurance Information Institute (Triple-I), this sector isn't just matching the U.S. GDP growth—it's surpassing it! 2024 brings a promising outlook, with Triple-I projecting the P/C insurance sector to increase by 3.4 percent—outperforming the Fed's GDP forecast by a notable margin. It's a testament to the sector's strength and the potential for further economic gains if the Fed opts for interest rate cuts. These are more than just numbers; they represent real growth opportunities across essential areas like housing and auto sales. As we navigate through varying economic pressures, from geopolitical risks to monetary policies, it's clear that the P/C insurance industry stands as a robust force within our economy. What does this mean for investors, policyholders, and the economy at large? It signifies stability, confidence, and a drive toward future prosperity. As we lean into the rest of 2024 and beyond, watch this space—the promise of continued growth in the insurance sector may well signal broader economic successes. #InsuranceGrowth #EconomicOutlook #FutureTrends

Redefining Growth: 📈 Insurance Industry Surpasses US GDP! The insurance sector just outpaced the nation's economy! Data from Triple-I reveals an exciting trend: P/C insurance is not just keeping up; it's surging ahead of overall US GDP growth. With a robust 3.4% predicted increase for 2024, that's a clear lead over the 2.2% forecast by the Fed. What's the secret sauce? It might just be the potential for Federal Reserve rate cuts. Such a move could amplify crucial underwriting areas like housing and auto sales, providing a substantial boost to the industry. And let's not stop there - the momentum is set to continue into 2025 and 2026, painting a picture of sustained superiority. It's not all smooth sailing, though. The ebb and flow of economic stress factors, from the Fed's monetary fine-tuning to geopolitical unease, can still sway the tides. But for now, the future looks promising, with Triple-I's projections shining a beacon of optimism in uncertain economic waters. Stay tuned and watch this space as the story unfolds. The insurance industry appears to be on a winning streak that might just be a prologue to a bigger economic narrative. #InsuranceGrowth #EconomicOutlook #GDPForecast

💹 P&C GROWTH 💹 📍 According to Insurance Information Institute, P&C underwriting growth has caught up to the U.S. GDP, and "is expected to continue outperforming overall GDP growth into 2025 and 2026." 📍 Economic drivers of P&C are expected to grow throughout the year in the event of rate cuts.

Net investment income in the U.S. property/casualty insurance segment hit a record high in 2023 of $73.9 billion, bolstered by the higher interest rate environment, according to a new AM Best report. #insurancenews #insuranceindustry

The economic drivers of the U.S. property/casualty (P/C) insurance industry are growing faster than the nation’s Gross Domestic Product (GDP) and are expected to gain further momentum in the event of Federal Reserve monetary rate cuts, according to the Insurance Information Institute’s (Triple-I) latest Insurance Economics Outlook. Triple-I forecasts P&C underlying growth to increase to 3.4% in 2024, 1.2% above the Fed’s GDP forecast of 2.2%. P&C underlying growth is expected to continue outperforming overall GDP growth into 2025 and 2026. https://lnkd.in/dubN7_KV

What Latest Inflation Report Shows Overall and for Insurance

According to the latest Insurance Economics Outlook from Triple-I, P&C replacement costs in the US are rising slower than overall inflation, expecting to maintain this trend for the next two years. Although the deceleration in cost increases may offer temporary relief for insurance carriers, it is unlikely to ease upward pressure on premiums, particularly with worsening underwriting trends. P/C replacement costs have climbed by 1.5% YTD, trailing behind the overall inflation rate of 3.5%. Based on Triple-I’s CPI forecast, US P/C replacement costs are projected to increase at a rate 1.75% lower than overall inflation over the next two years.

S&P Global Ratings' sector view for U.S. P/C #insurance has turned stable, from negative previously, according to its article, "U.S. Property/Casualty Insurance Sector View Improves On Stronger Earnings And Capitalization," published today. P/C insurers have posted a significant improvement in underwriting profitability for personal auto and homeowners' insurance, and we expect this trend to continue. Specifically, underwriting results for personal lines improved due to rate increases insurers implemented and other actions to limit exposure and restore profitability. Commercial lines pricing has softened somewhat but underwriting results remain strong. Capital adequacy for some of our rated insurers has also improved, in our view, due to a rebound in GAAP (generally accepted accounting principles) shareholders' equity and changes in our criteria for assessing capital adequacy. The current distribution of rating outlooks for P/C insurers--an indicator of potential future rating actions--has a positive bias. However, the majority of our rating outlooks remain stable, so we expect the number of rating changes to be relatively modest.