Editor's Note: This article originally appeared inNational Underwriter,P&C.

The property and casualty industry has been through tougheconomic times, a slow recovery and "unparalleled" governmentexpansion, but has "weathered the economic storm," an industryexecutive said here.

"Over the past few years, we have been through a lot--asproperty and casualty insurers, as business leaders, as Americans,"said David Sampson, chief executive officer of Property CasualtyInsurers Association of America (PCI), during his openingremarks addressed to insurance and reinsurance executives,consultants, advisors and modelers. Conference registration wassaid to be up more than 2 percent compared with last year.

"We've experienced an unprecedented economic disaster andcontinue to live through the aftermath of a once-in-a-generationeconomic storm," Mr. Sampson added. "We've witnessed anunparalleled expansion of the federal government. And we'veencountered a historic public backlash against government spendingand intervention in the private sector."

Mr. Sampson said the country's recovery from the recession hasbeen slower compared with historical standards and policy decisionsbecause Americans have little confidence and plenty of anxiety andare affecting decision-making of businesses.

Some have even "amazingly" used the opportunity to argue againstthe free-market system, he added.

"There is a great debate raging in America about the path backto prosperity and who will lead that effort," Mr. Sampson said."The choice boils down to the private sector or the federalgovernment. Which system will lead us out of our economic crisisand resuscitate our economic growth?"

Answering his own question, Mr. Sampson said that only theprivate sector can nurture and create prosperity. There is a rolefor government, however, even though Mr. Sampson admitted hebelieved "the government's policies over many years have helpedcause, or exacerbated, the financial crisis."

He noted, "Government should create the conditions for civilsociety to flourish and the private sector to innovate. Governmentshould provide a safety net for the most vulnerable in society.Government should uphold the rule of law and the sanctity ofcontracts so that businesses and consumers feel confident in thefuture."

He added, however, that "government cannot create prosperity. Itcan only redistribute wealth."

PCI supported the creation of the Federal Insurance Office (FIO)as outlined in the Dodd-Frank Act and lobbied for the FIO's narrowjob of data collection and international negotiation on behalf ofthe industry. While the entire scope of the office still needsironing-out, PCI has said it will keep a very watchful eye to makesure the FIO develops no regulatory authority.

Mr. Sampson added that the country was founded on risk-takers,and the insurance industry has allowed people to take the risksthat have evolved the country. This, he said, makes PCI's role asan advocate for the industry at the state and federal levels allthe more important--continuously reminding politicians that thep&c industry did not create the financial crisis.

PCI "believes in the power of free markets to spur innovationand competition, which ultimately helps consumers," Mr. Sampsonconcluded. "We know that the best way to grow the economy is byunleashing the talents and creativity of the private sector."

The task is not an easy one, with businesses and consumerssharing anxiety about the future as the country struggles torecover, he said.