I was a bit surprised when I checked out industry data from the Insurance Information Institute earlier this year that had pegged industry earnings for 2010, because for the first time that I can remember, life insurance became the smallest sector in this business. Annuities came in with nearly half of total industry revenue, health insurance came in at just over a quarter, and life insurance picked up the rest, as just under a quarter.
Many insurance industry executives are still expecting the economy to improve.
Analysts in the New York office of KPMG L.L.P., New York, have reported that finding in a summary of results from a survey of 100 high-level U.S. insurance company executives that was conducted in June.
When examining the consequences of the financial crisis on the insurance industry it is important to differentiate between direct and indirect effects on one hand and short- and medium-term ramifications on the other.