2008-10-13 16:18:04 -

www.researchandmarkets.com - Research and Markets (www.researchandmarkets.com/research/460440/north_america_insu) has announced the addition of the "North America Insurance Sectors: A Company and Industry Analysis (July 2008)" report to their offering.

This report updates the previous North American insurance report, focusing on the markets in Canada and the United States

Current Environment - Key Points

-- The deteriorating US economy cast a shadow over growth and the performance of the insurance industry entering into 2008, with the ongoing equity markets turmoil started by the subprime mortgage crisis throwing the US insurance industry into distress

-- Asset write-downs and credit losses reported by the industry reached US$38 billion, just short of the US$41.1 billion in claims from Hurricane Katrina

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The financial market turmoil triggered by the collapse of the US subprime mortgage market revealed weaknesses in US financial markets operations, leading to bearish sentiments affecting the markets

-- According to the III, premium growth in the US P&C sector decelerated to 0% in 2007 after peaking at 15.3% in 2002

-- The subprime meltdown, which started in July 2007, boosted merger and acquisition activity in the US

-- The Canadian insurance industry has enjoyed growth over the past four years but this all started to slow when the subprime mortgage crisis spread to the Canadian financial markets starting in mid-August 2007

-- Although 2007 was a profitable year for Canada's P&C insurance sector, most insurers remained trapped in the current market's soft cycle

-- Many Canadian life insurers saw their market values fall in the six months period to April 20, 2008

Industry Profile - Key Points

-- Insurance is the fifth largest industry sector in the US, accounting for 29.5% of total premium income reported worldwide in 2007

-- The life insurance sector is the largest sector in the insurance industry

-- Historically, it is rare for the insurance industry to produce net losses

-- Commercial insurance premiums continued to soften during the fourth quarter of 2007, suggesting that the downward pricing momentum has not hit the bottom of the cycle

-- US insurers are now facing the prospect of more frequent and severe tornado and thunderstorm events that may lead to even higher catastrophe losses

-- The US Treasury Department in March unveiled plans for a sweeping overhaul of the regulation of the US financial services industry

-- There are roughly around 100 active life insurance companies in Canada, according to the Canadian Life and Health Insurance Association

Only 79 life insurance companies provide health insurance protection to Canadians

-- More and more Canadians are looking for simpler, more stable investment options as part of their financial plans as an uncertain economic outlook clouds the future

Market Trends and Outlook - Key Points

-- With the scale of the US subprime mortgage crisis so far having the equivalent impact on the industry as a category five hurricane hitting Miami, big legacy insurers, not only in the US but around the world, are facing greater levels of D&O claims

-- The bids submitted by insurance companies to loosen regulations on their industry is helping to push spending on lobbying to record highs

-- Healthcare reform has become a hot issue in the current presidential campaign

-- The subprime crisis has already thrown the insurance industry into "uncharted territory", meaning performances are likely to remain choppy through 2008

-- A growing number of weather-related insurance losses is causing the industry to find new ways to deal with ever rising costs and solvency issues

-- Most insurers no longer expect to make money on auto insurance

While premiums in the sector are going up with the rate of inflation, claims on the other hand are rising at twice that rate

-- It is expected that the stronger Canadian dollar and turbulent stock markets will squeeze Canadian insurance companies' profits this year.

Key Topics Covered:

Current Environment - US - Sector Overview - Sector Performance - Leading Insurers - Mergers and Acquisitions Current Environment - Canada - Sector Overview - Sector Performance - Leading Insurers - Mergers and Acquisitions Industry Profile - US - Industry Size and Value - Key Industry Highlights - Policy and Regulatory Environment Industry Profile - Canada - Industry Size and Value - Key Industry Highlights - Policy and Regulatory Environment Market Trends and Outlook - US - Insurers Facing Rising Subprime - related D&O Claims - US Insurers Spend Heavily on Lobbying - Healthcare Reform on the Agenda for the Presidential Campaign - Market Outlook Market Trends and Outlook - Canada - Industry Looks to Address Climate Change - Auto Insurance No Longer Profitable - Life Insurers Branch into Wealth Management - Market Outlook Currency Conversion Table The Scope of this Report Key References Comparative Data Reports Coverage

For more information visit www.researchandmarkets.com/research/460440/north_america_insu.

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Laura Wood, Senior Manager
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