Reinsurance

If there is any segment of the property and casualty insurance industry to worry about when it comes to investments in municipal bonds, it would be small regional companies, an industry analyst said recently.

Although property and casualty insurers weathered the global financial crisis better than other types of financial services firms, emotional scars remain—scars that have prompted insurers to hang onto extra capital, an industry expert contended.

November’s employment numbers were mixed for the insurance industry, with an overall slight increase of less than 0.1 percent as the agent and broker workforce returned to January 2010 levels, according to the Insurance Information Institute.

Global interconnection has increased vulnerability to risks around the world, and insurer involvement will be critical in finding answers for the uncertain and volatile future, according to an official with the World Economic Forum.

While the entire year’s results are not in yet, the insurance industry should show significant financial gains for 2010 and its performance will be the best it has experienced since the beginning of the financial crisis, said an industry observer.

The American Bankers Association is calling for "wholesale" overhaul of the National Flood Insurance Program (NFIP), including providing incentives for the private market to assume a greater role.