The drop in unemployment numbers for December could translate into improved earnings for insurance brokers as increased employment means growth in employee-related premiums, one financial analyst notes.
In a report, Meyer Shields, an analyst with Stifel Nicolaus, says that continued, long-term improvement in the unemployment rate “should benefit head count-related insurance premiums [such as Workers’ Compensation and Employee Benefits].”
“In our view, property and casualty insurance-rate firming is gaining traction and should accelerate in mid-2012,” says Shields. At the same time, premium volumes and commissions should also see positive impact based on improved business earnings or property values.
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