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In November of this year, the people of Georgia will lose an insurance commissioner who has been good to our industry, and we will elect new leadership for that department. One thing that I have learned in my insurance career is that change is going to happen, so get used to it!

What is the state of our markets in Georgia? What I see in personal lines is that competition is alive and well to the benefit of Georgia consumers. But it seems to me that there has to be an end soon to the “I can save you money” game. The insurance industry is a “for profit” industry, and the companies will make a profit, maybe not a big one, but a profit nonetheless. I foresee double digit premium increases in the homeowners market or maybe a policy coverage change to address weather-related perils. Due to the recent weather-related losses in 2008 and 2009, the capital of insurers has to be depleted.

In the commercial market, I still see “soft market” pricing and underwriting. I have always been told that the market goes in seven year swings. I don’t know about you, but I think we are in about a 15-year swing down and showing very little signs of leveling out. I’ve seen one carrier in particular that is increasing premiums a little, but as long as other carriers are willing to offer lower pricing to write new business, all that is doing is causing me to lose business. And premiums are down for commercial renewals that are based on sales or payroll. Businesses have closed and there are very few new businesses starting up.

As the new year begins, where else can our economy go but up? I feel that opportunities are born every day and that 2010 is a year for improvement for our economy, our country and our industry.

- E. Scott Hansard, CIC President, PIA of Georgia