Commercial P-C Reserves Could Be $20 Billion Deficient, Study Says Loss reserves for commercial lines property-casualty insurers are $13 billion to $20 billion less than what they should be for the years 1997 to 2001, according to a new study.
The findings were announced by Chicago, Ill.-based Cochran, Caronia & Company, an investment banking firm that specializes in the insurance industry.
"We were surprised at the rate of deterioration," noted Cochran managing director Adam Klauber in an interview with National Underwriter. "There is a substantial amount of unrecognized loss development that will have to be recognized in the coming years," he added.
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