Plenty of Americans are looking for ways to cut costs. And according to the senior vice president and chief economist for the Insurance Information Institute, that could slow growth for the insurance industry. Steven N. Weisbart spoke to the attendees of the Annual Executive Conferences in New York saying consumers have less buying power, especially when it comes to financial products. And that reduced buying power isn’t good for the insurance industry, according to P&C National Underwriter.

Growth has been noticeably slower during this recession compared to past recessions, according to Weisbart. He explained that gross domestic product grew at about three percent after past recessions, but this recession has been slower. Unemployment and comprehensive unemployment numbers are also higher than normal. According to current statistics, unemployment is at 9.6-percent while comprehensive unemployment is at 17.6-percent. Weisbert says that roughly 6.25 million people fall under the long-term unemployment category.

All of this impacts the insurance industry because the less disposable income people have the less likely they are to buy insurance beyond what is required by law. Also, new car purchases are down which means people are driving older cars. Complying with new regulations from the Federal Insurance Office is also proving to be difficult for the industry, according to P&C National Underwriter.