Despite the lingering effects of the financial crisis and other challenges, the property-casualty industry has remained focused on its core business, said CEOs of a handful of property-casualty insurers.

Speaking on a panel discussion at the 14th annual Property/Casualty Joint Industry Form, the executives talked about how the industry remains focused on transferring risk and paying claims.

Thomas Motamed

“Many of us have been in the business for decades and have weathered many storms,” said Thomas Motamed, chairman & CEO of CNA Financial. “We are in the business of paying claims. All of us were liquid and paying claims during the credit crisis.”

The panel, moderated by Leigh Ann Pusey, president and CEO of the American Insurance Association, sought insights into the ways insurance company CEOs view the operational issues and challenges facing the property-casualty market this year and beyond.

Hank Watkins, president of Lloyd’s America, noted that the property-casualty industry has fared better than other industries in the last two years.

“We have weathered the storm well,” Watkins said. “You haven’t heard a whole lot about the insurance industry having their hands out for help from the government.”

Still, insurers need to add value by helping their customers who are struggling through the recession, said Stuart Parker, president of USAA’s property-casualty insurance group.

“More of our members are coming to us and asking for ways to improve their situation,” Parker said. “They are struggling with the insurance cost, so we are trying to give them advice in terms of maybe they shouldn’t upgrade their car or they should buy a smaller house. Consumers should be tightening their belts and deleveraging. We should be giving people advice and adding value to help them in their long-term financial security.”

Patrick Thiele, president and CEO of Partner Re Ltd., noted that since Sept. 11, 2001, “the industry has weathered a series of crises in good shape. Today we continue to meet our obligations relative to our claims and to society as a whole,” he said.

Sandra Parrillo, president and CEO of The Providence Mutual Fire Insurance Co., said insurers have focused on providing protection and financial security, paying claims and maintaining conservative investment portfolios.

“Not everyone finds insurance as fascinating as I do,” Parillo said. “Surprisingly, some may even think it’s unexciting. However, I think I’d term that as solid and secure.”

Panelists said one key challenge facing the industry in 2010 is that premium growth remains negative because insurance demand is down amid the recession.

“There is a lag between what is happening on Wall Street and on Main Street,” Parillo said. “What we are going to need is a sustained period of economic recovery for this consumer confidence to come back.”

Government actions may also exacerbate the volatile investment environment for insurers in the current economy, according to Thiele.

“We are bearing the unintended consequence of the government interaction into the economy,” he said. “Zero-percent interest rates, which are necessary to save the financial institutions, are not particularly good or pleasant for those companies and industries that rely on savings and building their capital base through artful investment of their assets.”