Even though prolonged high inflation would materially increase the risks of significant pricing errors and reserve deficiencies, the ongoing positive pricing environment and potential for further redundancies from declining claims frequency positions the property and casualty insurance industry for fruitful gains. Moreover, the workers’ compensation line remains the largest source of favorable development for the industry. According to a Mordor Intelligence report, the U.S. property and casualty insurance market is expected to grow at a CAGR of 6% by 2025. Therefore, both Hartford Financial Services Group (HIG) and American International Group (AIG) should benefit.
HIG provides insurance and financial services to individual and business customers. The company operates through five segments: Commercial Lines; Personal Lines; Property & Casualty Other Operations; Group Benefits; and Hartford Funds. AIG offers commercial, institutional, and individual insurance products. The company operates through two segments: General Insurance and Life and Retirement.
