Archives

Nov
11
2014

US Reserve Adequacy: Diminishing Returns

Stephen Mildenhall – With reduced equity in reserves, mistakes in underwriting, rate monitoring, and primary pricing will no longer be covered up by a reserve cushion Reserve releases in the US are now in their eighth consecutive year, heightening concerns insurers are cutting reserves too aggressively. We can form an independent opinion about the adequacy […]

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.

Copyright © 2019 | Property Casualty Insider