The first quarter financial results for US insurers appears to confirm what many in the North American property and casualty insurance industry have come to suspect: that the pricing momentum of the "hard market" is rapidly disappearing. Of particular note is the significant year-on-year drop in Canadian reinsurance premium growth over 2003, as reported by the Reinsurance Research Council (RRC). The RRC industry data indicates that net written premium volume grew by about 4.5% over the course of 2003, significantly lagging the 20%-plus gain made by primary companies over the same period. Robert Hartwig, chief economist at the Insurance Information Institute (III) shares the view that the "good times" of the hard market may be coming to a close. Justified or not, the combination of rising inflation and slower premium growth could plunge the industry into a negative real growth situation by late this year or early 2005 for the first time since 1999.

Price increases
Property & casualty insurance
Underwriting