Overview

The 2,300 property and casualty insurance carriers in the US underwrite insurance policies that protect policy holders against losses that may occur as a result of property damage or liability. Major types of policies include vehicle property and liability; property and liability; and general liability. Other types of policies sold include health, life, and accident insurance. Large firms may offer reinsurance policies, which limit the amount insurers can lose.

Uncertainty Related to Risk and Losses

Success in the property and casualty insurance business is dependent on a firm’s ability to underwrite and price risk accurately and estimate losses.

Natural Disasters and Other Catastrophes

Damage and destruction due to natural disasters and other catastrophes expose property and casualty insurers to the financial burden of covering massive losses.