Our December cover story digs into whether or not some commercial carriers have tapped their cash reserves to the point they are going to be in a precarious position next year, if they have to pay an expensive claim.
For the most part, carriers justify releasing the reserves to their bottom lines as prudent financial moves.
Nonetheless, these giant carriers will march into 2011, when the soft pricing market is expected to persist, with "less of a cushion for any kind of catastrophic losses that could occur,'' Ken Crerar, president of the Council of Insurance Agents & Brokers, told our writer Katie Kuehner-Hebert.
Hebert's article fittingly ends 2010 and makes us think about what next year will bring for the commercial insurance industry.
Here's a few of the big issues we'll be watching and covering in 2011:
-- The implications of yet another year of a soft insurance market.
-- What the new federal rules being written for financial services companies to comply with the Dodd-Frank legislation will mean for carriers and brokers.
-- The trend in the workers' comp world of an increase in the frequency of claims. One senior insurance company executive told me recently this will be critical but nobody is yet paying attention to it.
-- How the Bermuda insurance landscape adapts to new Premier Paula Cox, who appears to be much friendlier to the industry than her predecessor.
We thank you our loyal readers for the time you spent reading us this year. We take seriously our responsibility to continue providing you objective coverage of the vast commercial insurance marketplace.
December 1, 2010
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