From the January 9, 2012 issue of National Underwriter Property & Casualty • Subscribe!

Willis: Underwriting Discipline Comes to P&I Coverage

The Protection and Indemnity (P&I) market, a broad type of Marine Legal-Liability coverage, delivered a blockbuster financial performance last year—but predicted poor investment returns and increased claims will spell premium increases for 2012.

In a 50-page “2011 Protection and Indemnity market report” issued by Willis Group Holdings, the insurance broker says the 2010-2011 period was benign for claims compared to the previous year. Paid claims were down more than 11 percent against 2009-2010, although the report notes claims are still high in this market.

When combined with stable income levels, P&I produced an overall market-underwriting surplus of 3 percent, the highest underwriting profit ever recorded by the market.

Meanwhile, the market reported a respectable 6.5 percent investment return, which, combined with the positive underwriting result, propelled free reserves to a new record level at Feb. 20, 2011. This represented a 22 percent increase from the position at the end of the previous year, says Willis.

Nevertheless, Willis says 2012 renewals will see an average rate increase of 4.25 percent, up from 3.42 percent in 2011.

Comments

Resource Center

View All »

EPLI Programs Crafted Just For Your Clients

Bring us your restaurant clients, associations and other groups and we’ll help you win more...

Is It Time To Step Up And Own An Agency?

Download this eBook for insight on how to determine if owning an agency is right...

Claims - The Good The Bad And The Ugly

Fraudulent claims cost the industry and the public thousands of dollars in losses. This article...

Leveraging BI for Improved Claims Performance and Results

If claims organizations do not avail themselves of the latest business intelligence (BI) tools, they...

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

Get $100 in leads with $0 down!

NetQuote's detailed, real-time leads have boosted sales for thousands of successful local agents across the...

The Growing Role of Excess & Surplus Lines in Today’s...

The excess and surplus market (E&S) provides coverage when standard insurance carriers cannot or will...

Increase Sales Conversion with this Complimentary White Paper

This whitepaper will share proven techniques - used by many of the industry's top producers...

D&O Policy Definitions: Don't Overlook These Critical Terms

Unlike other forms of insurance where standard policy language prevails, with D&O policies, even seemingly...

Environmental Risk: Lessons Learned from Willy Wonka and the Chocolate...

Whether it’s a chocolate factory or an industrial wastewater treatment facility, cleanup and impacts to...

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.