|
|||
|
|
|
Mushy Market Good for Business
Price drops of 4 percent to 5 percent? The second straight year of underwriting profit, after many others of underwriting failure? What gives with these property/casualty carriers? Is there something more going on here than the usual business cycle? Analysis from Towers Perrin and A.M. Best can hopefully provide some answers.
A.M. Best's "2008 Special Report: U.S. Property/Casualty--Review & Preview. U.S. P/C Industry Records Strong Results--But for How Long?" predicted that, when all is said and done, the industry will see a net income of $59.2 billion in the United States, with that underwriting profit being $19.3 billion. That's despite a drop in net premiums written in 2007, the first time that's happened since 1943, and a softening market. See excerpts from the P/C industry report and find out how to get a full copy at Best's Web site. As for that softening market, Towers Perrin released its quarterly CLIPS report on price changes between 2006 and 2007, which says, among other things, that carriers saw price declines in all lines looked at by the consultancy. D&O and EPLI saw the biggest price declines between the two years.
Copyright 2008© LRP Publications |
|
|
|
Entire contents copyright © 2013 Risk and Insurance® All rights reserved.
May not be reproduced in any form without written permission.
|