Should P&C insurers change investment mix after new tax law?

As a result of the latest tax law changes, P&C insurers may be rethinking their investment strategies.

A coach may have an ideal game plan for success, but if the rules change, the strategy must evolve as well. Property & casualty insurers can expect to see the rules of the game change this year: New tax laws will likely require them to make significant changes in how they play the game, including a fresh look at their long-time investment strategies.

The changes in federal tax laws offer some clear homerun opportunities for growth: They will likely improve the bottom line for most P&C insurers. The reduction of the federal corporate tax rate to 21% from 35% will generally be a positive for insurers’ net income.