Analysts expect $40 billion-plus storms to become more common, and many within the industry expect a $100 billion CAT year in the not too distant future. Pricing and underwriting discipline also remain a key issue. The III notes that regulators, especially in catastrophe-prone areas, are reluctant to allow insurers to charge risk-based rates. Most insurers are also paying more for reinsurance, which causes them to report lower “net” written premium growth figures if they cannot fully recoup those costs at the retail level.

The 2007 Groundhog Survey, carried out by the Insurance Information Institute, suggested that due to relatively low catastrophe losses in 2006 and a strong performance in virtually all other major lines of property/casualty (P/C) insurance, the industry should achieve its best underwriting performance since 1936. Surveyed analysts expected the industry’s profitability to continue in 2007, although with a much smaller underwriting profit, and the trend of decreasing underwriting profits was expected to continue in 2008.

• U.S. insurance premiums totaled $955.6 billion in 2005, versus $956.9 billion in 2004. The 2006 total gross premiums were approximately $1,200 billion.
• Non-life insurance accounted for 54.8% of total gross premiums written in 2006.

• The transaction value of insurance-related mergers and acquisitions totaled $32.7 billion in 2005, versus $14.2 billion in 2004.

• There were 2,725 property/casualty insurance companies in the United States in 2005, versus 2,700 in 2004.

• Consider protective devices (smoke alarms, fire extinguishers, deadbolts on all exterior doors etc) – and save up to 15%.
• Consider building house from Fire Resistive material – it could bring you up to 15% discount depending on the materials.
• The newer the house – the cheaper insurance (< 10 years old => 25% reduction).
• The older you are – the less insurance price (you might qualify for as much as a 10 percent discount).
• Always take inventory – it will help you to claim property worth.