In the property insurance marketplace for power and utility companies, insurers are beginning to use valuation tools including specialized software and will need to monitor their declared values. Insurers continue to focus on maintaining profitability and increasing surpluses. There is also increased competition in the casualty insurance marketplace for power and utility companies as competitors emerge for mutual insurers.

Looking Ahead

Property insurance markets for power and utility companies are likely to remain stable in early 2010. In the casualty insurance marketplace, it is likely that mutual insurers will retain the vast majority of their core electric and gas utility business. For power and utility financial and professional lines clients, 2010 is likely to bring continued premium rate improvement as mutual carrier results improve and available capacity continues to grow.