“Near term, economic growth may spur increases in the frequency of claims. And as the economy inches closer to full employment, inflation in the severity of claims may accelerate. But economic growth may also spur increases in demand for insurance that absorb excess capacity faster than investment gains create it.
If it does, insurers can look forward to an end to the soft market, accelerating premium growth, and improvement in underwriting results.”
– Michael R. Murray, ISO’s assistant vice president for financial analysis, on the short-term prospects for property-casualty insurers