Property and casualty insurers have seen a shift in earnings over the past eight years, becoming profitable after years of poor returns, something a consulting firm said is a major and permanent shift for the industry.

Flooding in the Australian state of Queensland has intensified over the last few days as rainfall in January has compounded problems caused by rain and a tropical cyclone in late December, and insurers are reporting increasing claim counts.

Spending levels for most of Gartner’s clients are projected to go up in 2011, according to Kimberly Harris-Ferrante, vice president and distinguished analyst for Gartner, as they put the bad economy behind them.

Is it ever a good idea to turn away any business, especially in tough times?