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.

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.

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

Tort costs dipped 2.7 percent in 2009 but are expected to grow over the next two years as the gross domestic product grows, said Towers Watson.