Declarations

2011 Exposures

“Exposures will continue the growth we saw in the second half of 2010 as the economy continues its recovery, implying increases in insurance premium volume. Still, the low interest rate climate, which will likely persist throughout 2011, will challenge insurers to price risks in closer relation to their claims potential. Similarly, business bankruptcies might ease off … but are likely to continue at troubling levels, so that the demand for commercial insurance in 2011 will rise from a smaller base.”

—Dr. Steven Weisbart, Insurance Information Institute senior vice president and chief economist on the profitability of the P/C insurance industry in 2011.

Backing Business

“We need to get Missourians back to work in lasting and growing industries that pay well and offer benefits.”

—Missouri Senate President Pro Tem Sen. Rob Mayer, of Dexter. Mayer and his fellow Republican lawmakers have pledged a pro-business agenda in this year”s legislative session. The list of business priorities is long and varied: a cap on state franchise taxes affecting big businesses; a moratorium on new regulations and fees affecting small businesses; more restrictions on lawsuits by employees claiming injuries and discrimination; a tweak of business tax incentives; and a proposed ban on union-only work places.

An Acceptable Year

“2010 was an acceptable year, a good year. You can”t avoid the fact that in those good numbers you”ve got a release of prior year reserves and returns that are not the kind you want over trend. This year is one where underwriting discipline and managing costs are going to be more important than ever because we can”t allow the results of 2010 to delude us into thinking they are better than the true underlying numbers suggest.”

—Liam McGee, chairman, president and CEO of The Hartford Financial Services Group Inc. speaking at the Property/Casualty Joint Industry Forum, held by the Insurance Information Institute.