President Barack Obama's stimulus package will benefit theinsurance industry that is still recovering from catastrophe andinvestment losses from last year, a New York-based insurancebroker, told the Jamaica financial community.

Harry Ennevor, president of E.G. Bowman Company, speaking to theJamaica Stock Exchange and Capital Markets Conference in MontegoBay, Jamaica, said the jobs created by the plan will increase thepurchase of insurance, according to a release of his remarks by hisfirm.

"Companies working on highway, infrastructure, housing, school,and technology projects will all require insurance for theiroperations, plus workers' compensation, travel-accident and healthinsurance for their employees," said Mr. Ennevor.

"President Obama hopes that the plan will preserve or createthree to four million jobs--and many of them will be in theinsurance industry, both at carriers and brokers. The stimuluspackage is a positive for not only the industry, but also for theU.S. and world economy," he said.

While the U.S. industry faces challenges, insurers, particularlyproperty-casualty companies, are in much better shape than bankingand other financial institutions, Mr. Ennevor pointed out.

"In the U.S., the states are responsible for regulatinginsurance companies," he said. "State regulators don't letoperating insurance companies invest heavily in credit-defaultswaps or subprime mortgages. They are required to put the vast bulkof their assets in plain-vanilla stocks and bonds."

But those investments declined last year, and insurers areraising premiums to catch up, he noted. Additionally, insurancecompanies' catastrophe losses rose substantially last year.

"But most insurers are still making profits--something we can'tsay about banks and other financial companies," Mr. Ennevor added."The vast majority of insurers are still in good financial shape,and though less wealthy than before, are well positioned to takeadvantage of future opportunities. The president's stimulus packagewill provide many opportunities for carriers, brokers andagents."

Also speaking were Orville Johnson, executive director of theInsurance Association of Jamaica, and Patrick Lawe, managingdirector of Lawe Insurance Brokers Limited.