For 2017, experts predict the U.S. economy will continue to expand. "Job growth means higher payroll, sales, more autos insured by businesses, construction, property expansion, etc., which will increase gross premiums underwritten," according to the 2017 Wells Fargo Insurance Market Outlook. "The majority of insureds will continue to see rate reductions, just not as high as in prior years."

Insurance Journal examined industries experiencing changes, challenges, expansions and growth in the past year and picked the top five market sectors that could offer opportunities for agents and brokers in the property/casualty insurance industry in 2017. Each market will be detailed on MyNewMarkets.com. over the coming days.

All Eyes on Infrastructure

Quality infrastructure is a critical component to U.S. economic success, but lack of funding in recent years has left many of the nation's roadways, railways, airports, dams, bridges, water and energy plants in disrepair. Renewed federal efforts to rebuild America's infrastructure by President Donald Trump could further boost the construction insurance sector.

In February, Trump promised in a speech to Congress that a $1 trillion infrastructure rebuilding plan would create "millions of new jobs." While few of those jobs are expected to materialize this year, the promise offers new hope for construction specialists.

Trump's team has compiled a list of about 50 infrastructure projects nationwide, totaling at least $137.5 billion, as the new White House tries to determine its investment priorities, according to documents obtained by McClatchy's Kansas City Star and The News Tribune.

Senate Democrats also proposed a $1 trillion infrastructure bill to fund the nation's infrastructure projects over a 10-year period and state their proposal would create more than 15 million jobs.

There's no question about the need for public infrastructure in the United States, said Scott Rasor, head of construction for Zurich North America.

"The question is how to finance that need," he said.

"We still have a major need to build infrastructure in the country, not only from airports, but roadways, etc.," said Jim Untiedt, president of PentaRisk Insurance Services LLC. "We'll see an increase in public works, which I think is good."

Brian McDonnell, managing principal, Construction Practice at EPIC Insurance Brokers & Consultants, also expects to see greater growth in infrastructure spending now that President Trump is in the White House. But "whether those dollars actually get spent in 2017 is another question altogether," he said.

It terms of overall spending in the construction market, McDonnell said the industry is back to where it was in 2005-2008 in terms of real dollars spen,t although in his view some markets are close to tapping out in the San Francisco Bay area.

"Many things are now in play politically so it's hard to say what's going to happen (during the rest of 2017) but some sectors are close to being tapped out from a demand perspective (office and multi-family residential being two examples in some cities)," he said.

"If the economy remains healthy, and the consumer continues to lead expansion, the (construction) market could grow at 5 percent a year for the next two years," Rasor said in late November. But the economy is just as likely to go the other way, he added. If that happens, construction will certainly contract. However, Rasor said, overall, he expects 5 percent growth in terms of put-in-place construction over the next year. "That's probably reasonable."

Check back tomorrow for opportunities in the cyber market...