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

The property and casualty industry has been through tough economic times, a slow recovery and "unparalleled" government expansion, but has "weathered the economic storm," an industry executive said here.

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

"We've experienced an unprecedented economic disaster and continue to live through the aftermath of a once-in-a-generation economic storm," Mr. Sampson added. "We've witnessed an unparalleled expansion of the federal government. And we've encountered a historic public backlash against government spending and intervention in the private sector."

Mr. Sampson said the country's recovery from the recession has been slower compared with historical standards and policy decisions because Americans have little confidence and plenty of anxiety and are affecting decision-making of businesses.

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

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

Answering his own question, Mr. Sampson said that only the private sector can nurture and create prosperity. There is a role for government, however, even though Mr. Sampson admitted he believed "the government's policies over many years have helped cause, or exacerbated, the financial crisis."

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

He added, however, that "government cannot create prosperity. It can 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 narrow job of data collection and international negotiation on behalf of the industry. While the entire scope of the office still needs ironing-out, PCI has said it will keep a very watchful eye to make sure 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 risks that have evolved the country. This, he said, makes PCI's role as an advocate for the industry at the state and federal levels all the more important--continuously reminding politicians that the p&c industry did not create the financial crisis.

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

The task is not an easy one, with businesses and consumers sharing anxiety about the future as the country struggles to recover, he said.

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P&C Industry At Crossroads, PCI Exec Says

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