Transcript No Slide Title

$50
$320.6
$308.8
$299.7
$280.8
06
07E
$242.2
$224.7
$200.4
$198.1
$187.2
$198.9
$180.0
$177.5
$168.9
$292.8
$100
$288.1
$150
$156.3
$200
$147.0
$ Billions
$250
$214.2
$300
$201.6
$350
$209.2
Total losses paid by
insurers increased by $146
billion or nearly 100%
from 1987 through 2007
$292.6
Losses Paid by Property/Casualty Insurers
Have Steadily Increased for Decades
Dip in 2006/07 was associated with drop
in catastrophe losses, which is unlikely
to persist. Losses and loss ratios in 2007
rose. During 2006/07, the price of many
types of insurance fell.
$0
87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
Sources: A.M. Best; 2007 figure is annualized from 9-month ISO results; Insurance Information Institute.
04
05
Insurance Premiums Are Shrinking
Relative to Size of Economy
4%
3.6%
3.1%
2.9%
3%
Premium growth is less
than GDP growth,
meaning more money in
the pockets of consumers
2.1%
2%
Real NWP Growth
1.2%
1.2%
1%
0%
-0.5%
-1%
-2%
-3%
-4%
-2.9%
Real Net Written Premium Growth
04
05
06
-2.9%
Real GDP
07E
-2.7%
08F
Sources: A.M. Best, US Bureau of Economic Analysis, Blue Chip Economic Indicators; Insurance Information Institute.