NU Online News Service, Jan. 24, 1:34 p.m. EST
The good news for property and casualty insurers is that 2012 should see positive rate momentum. The bad news is that insured-exposure growth will not likely be a contributing factor to premium growth, according to a Keefe, Bruyette & Woods analysis.
In its report, “Premiums in 2012: Don't Look at Insured Exposure Growth for Much Help,” KBW says, “In 2012, we expect industry premium growth to approach the mid-single-digit range due primarily to positive rate momentum. We do not expect insured-exposure growth to contribute much to the premium base as economic fundamentals remain weak.”
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