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.

• 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.