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2006 Insurance Outlook:
Industry Watchers Cautious About Road Ahead
Sparked by an improving
national economy and an increasingly robust building
industry, the construction insurance market made
positive strides in 2005, despite a record year
in hurricane-related devastation.
In fact, according to
the ISO and Property Casualty Insurers Association
of America, the U.S. property/casualty insurance
industry’s net income after taxes rose 4.4%
to $28.8 billion in nine months 2005 (from $27.6
billion in nine months 2004). The consolidated
surplus, or statutory net worth increased 5.2%
to $414.3 billion during this time, up from $393.8
billion in the same period of 2004.*
“The ISO report
is a telltale sign if insurance companies are
making more money and therefore able to increase
coverage and/or reduce premiums,” says Bill
McIntyre, CEO and president of the American Contractors
Insurance Group (ACIG).
“However, there
are crosswinds this year because of the hurricanes—and
these may have a negative effect on the general
pricing of insurance for both property and casualty
during the upcoming renewals.”
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This section was written by Vicki Speed. She
can be reached at vickispeed1@cox.net.
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