Property-Casualty Specialty Insurance Markets: Profiting from Intelligent Design

Conning Research: Market and Product Specialization Driving Superior Performance among Property-Casualty Insurers

  • Conning’s research finds that specialty segments now account for 40% of U.S. insurance market, with higher growth expectations
  • High degree of expertise critical to specialist success.

(Hartford, CT) September 13, 2011 – While there are various market interpretations of the term “specialty” in property casualty insurance, Conning’s research shows that specialization pays off for the true segment experts, according to a new study by Conning Research & Consulting.

“Specialist insurers have about 40 percent of the market, under our definitions, and there has long been a perception in the industry that specialization can lead to higher margins,” said Clint Harris, analyst at Conning Research & Consulting. “In researching specialty players, we defined and quantified specialty markets and did, in fact, find that a number of these markets achieve superior underwriting returns and that many specialty insurers achieve consistently superior underwriting performance compared to the industry averages. Our analysis also indicates that these superior-performing specialist insurers have higher long-term growth opportunities.”

The Conning Research study, “Property-Casualty Specialty Insurance Markets: Profiting from Intelligent Design” defines, quantifies and analyzes various specialty insurance segments and players, and analyzes associated performance metrics and strategies.

“The industry is attracted to specialty, and insurers have increased their specialty capabilities and are adopting multi-specialty strategic models,” said Stephan Christiansen, director of research at Conning. “Recent acquisitions illustrate the continued interest for both large and small specialty insurers and underwriting units. Yet as insurers expand in specialty markets, development or acquisition of expertise is critical to success, and there is a legitimate concern that na�ve capital could disrupt these markets.”

“Property-Casualty Specialty Insurance Markets: Profiting from Intelligent Design” is available for purchase from Conning Research & Consulting by calling (888) 707-1177 or by visiting the company’s web site at

About Conning Research & Consulting

Conning Research & Consulting is a division of Conning, a provider of asset management and insurance industry research and consulting services to insurers. Conning Research & Consulting has published independent insurance industry research for 50 years, including market coverage of 30 segments of the industry in addition to industry forecasting and identification and analysis of major strategic issues. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.