As you are all aware the very public difficulties of the largest insurer in the world AIG in the US continues to bombard the airwaves every day. Despite this there continues to be a demand for insurance in the US. Indeed insurance is the kind of product that is not as fully impacted by the economic climate, as say, travel.
There is an element of demand for insurance that actually rises when risks increase. There is also the savings element of insurance which falls with an economic downturn. The extent to which the insurance industry will be impacted will depend on which of these influences predominates.