Standard & Poor's reports that property/casualty insurer growth likely will slow in the next few years as companies deal with long-term trends in addition to global economic conditions. S&P points out several factors as contributing to slow growth: o Policyholder coverage reductions o Retentions increase o Negative premium growth rates in industrialized countries. Other challenges for insurers include global population shifts, natural catastrophes and government regulation. According to 2007 U.S. market data, the growth rate of the p/c industry was less than 1 percent. In 2008, S&P said the U.S. p/c insurance market declined by nearly 1 percent. S&P said it expects p/c insurers to have a significant exposure to terrorism risks over the next decade. Analysts noted that despite government programs in several countries that will cap losses, insurers still will have to mitigate losses through reinsurance, better risk management, terms and conditions, and strong capital and earnings.