Workers' compensation will likely be the property-casualty lineto benefit most from the economic stimulus package signed into lawby President Barack Obama, although it may be quite awhile beforeinsurers see any boost in their premium volume, according toInsurance Information Institute President Robert P. Hartwig.

Indeed, if the administration's target of 3.5 million jobscreated or preserved is realized, that would translate into $1.1billion in private workers' comp premiums, Mr. Hartwig predictedduring a webinar put on by the Institute and Fireman's FundInsurance Company, on "How the Economic Stimulus Plan Will Impactthe Property-Casualty Insurance Industry."

However, he said the stimulus package is unlikely to increasenet premiums written by more than 1 percent--or about $4.5 billionin total--while warning that since the package is only now beingrolled out, insurers will likely not see its effects until year-end2010.

The direct impact of the stimulus package on p-c insurers, Mr.Hartwig said, will result primarily from increased demand forcommercial insurance coverages.

He noted the package contains no direct provisions thatspecifically address p-c insurance--with respect to spending, aid,or tax reductions--unlike direct benefits granted to otherindustries, such as auto, homebuilding and health care.

But that doesn't mean there won't be opportunities for insurers,according to Mr. Hartwig, who said infrastructure expenditures willresult in an increased need for insurance on workers, property andto protect against various liability risks.

Construction spending, he noted, is likely to have the mostdirect impact on commercial insurers. Carriers that work withcontractors are going to see increased demand for the types ofcoverage necessary for infrastructure projects, Mr. Hartwigsaid.

Insurers should expect overall growth in the role of governmentas a result of the stimulus, Mr. Hartwig observed, adding that theindustry must maximize the benefits of such a paradigm shift.

With the increased focus on energy efficiency and alternativeenergy solutions from the Obama administration, Stephen Bushnell,senior director of commercial insurance for emerging industries atFireman's Fund, said insurers could find new coverageopportunities, but they also need to understand the risks.

For example, he said the liability arena around greenconstruction is largely unexplored. Building owners and contractorswill be trying to understand their obligations, what is expected ofthem, and what promises and guarantees they may have to make withrespect to these new "green" initiatives.

Speaking at an earlier gathering, Harry Ennevor, president ofE.G. Bowman Company, a New York-based insurance brokerage, agreedthat the jobs created by the Obama stimulus plan will increase thepurchase of insurance.

"Companies working on highway, infrastructure, housing, schooland technology projects will all require insurance for theiroperations, plus workers' compensation, travel-accident and healthinsurance for their employees," said Mr. Ennevor, speaking to theJamaica Stock Exchange and Capital Markets Conference in MontegoBay, Jamaica.

"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," he added,according to a release of his remarks by Bowman. "The stimuluspackage is a positive for not only the industry but also for theU.S. and world economy."