Archives June 2013

Jun
25
2013

From Fire Insurance to Home Owner’s and Commerical Property Insurance

Despite the many gaps and restrictions on coverage we see in insurance contracts today that we have to endorse around, it’s worth bearing in mind that most major policies forms with multiple perils and coverage grants were originally separate policies, often issued by separate insurance companies.

Look at the modern homeowner’s insurance policy and the commercial property policy. We still sometimes refer to them as “fire policies,” because that is originally all they covered, the peril of fire, nothing else.

Jun
19
2013

Disappearing Risk

2012 saw the ninth year of softening property casualty pricing measured by net written premium as a proportion of US GDP. In 2010 the proportion moved below 3% for the first time since 1974, and it stayed below 3% in 2011 and 2012. In 2003, the peak of the last hard market, property casualty insurance premium represented 3.6% of the total economy; by 2012 the proportion had decreased to 2.9%, a reduction of 0.7 percentage points of the entire economy – a massive movement for the industry.

Jun
12
2013

Predicting Bionic Growth

Back in the early ‘70s, the fictional application of a technology called bionics created a pop culture icon in the form of The Six Million Dollar Man. The main character in this TV program went from near death to “better than he was before. Better. Stronger. Faster.” The technology that made him remarkable extended his sight, increased his reach, and provided more lift than any other human being ever. But here’s the point: If each of three people had only one bionic advantage, the story would have been far less effective than one character possessing all three capabilities simultaneously. Like The Six Million Dollar Man, some carriers today have implemented many operational and technology improvements over the years and now have iconic brands built around vigorous performance in growth and profitability.

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