National Underwriter P&C November 21-28, 2011
Cover Story
While Carriers Crave a Market Turn, Confluence of Factors May Constrain Rates
With increased losses on their books, ample evidence exists that the double-digit decreases that insurers were routinely quoting customers on property and casualty accounts during the prolonged soft market are over. But the degree (how high will prices go?) and extent (how many lines of business will see a bump?)...
Market Report
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Carriers Say They’re Pushing Rate
After bearing the effects of a sluggish economy and substantial weather-related losses in 2011, carriers are well aware that they need to increase rates in order to balance their books.
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London Market Weathers International, U.S. Storms
The London market, absorbing its share of U.S. and international catastrophe losses has come out “extremely well positioned” in terms of risk appetite, although brokers are challenged to find the best deals for clients faced with increases.
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A.M. Best’s London View: Reserves a Concern
“Catastrophe losses, a difficult trading environment and shrinking reserve releases are together putting considerable pressure on underwriting results this year, and investment earnings are providing little relief," says Catherine Thomas of A.M. Best.
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Willis, Aon Report Flat to Low Aviation Premiums
Brokers Aon and Willis report that aviation premiums are flat to low, with Willis reducing premium for clients 7 percent.
Buyer's Report
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Pleasant Surprise: Buyers Largely Delighted With Jan. 1 Renewals
In spite of a difficult year for catastrophes, buyers of both liability and property coverage are for the most part pleased with their renewals, even for difficult placements, although they stress that having a positive risk history and solid broker/market relationships makes a difference.
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Pending Bill Could Raise Rates
Terry Fleming, director of the Division of Risk Management, Montgomery County, Md., and immediate past president of the Risk and Insurance Management Society, cautions that the Neal Bill, introduced by Rep. Richard Neal, D-MA, and Senator Robert Menendez, D-NJ, could mean hardening rates in the future.
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Case Study: City RM Switches to RRG After Unacceptable Increase in Excess Liability
Sarah Perry, risk manager for the City of Columbia, Mo., completed the city’s renewals by Oct. 1--but while property "went great," there were some problems.
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Case Study: Health Care RM Counts on Long-Term Relationships, Self-Insurance to Create Favorable Renewal Clime
Sarah E. Pacini, vice president of risk management and insurance with Advocate Health Care in Oak Brook, Ill., says now is actually a good time to buy coverage.
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In Any Relationship, Know Your Assets
Lori Seidenberg, vice president of enterprise risk management for Centerline Capital Group in New York, has some renewal advice for risk managers.
Special Report
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Penn State Sex Abuse Scandal: A Risk-Management Nightmare
Multiple incidents of alleged sexual abuse went unreported to the appropriate authorities, resulting in a situation where Penn State and third parties now potentially liable.
News
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Survey Reveals Insurers Not Doing Enough with Analytics, Mobile to Serve Their Customers
Plenty of room for improvement exists among insurers looking to maximize their customers’ experience and gain new business, according to a new survey.
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Industry Loses More than 7,000 Jobs Between August and September
The insurance industry lost 7,400 jobs from August to September 2011, following a trend of declining employment that actually goes back a decade.
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KBW: P&C Pricing May Be on the Rise, But Strong Headwinds Remain
Pricing in the property and casualty insurance industry may be on the rise—but several signs point to worsening returns on equity and earnings per share, says financial-services specialists Keefe, Bruyette and Woods (KBW).
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Reserve-Release Decline May Spell Greater Rate Increases
Third-quarter reserve releases declined nearly 19 percent over the same period a year prior—which could put greater pressure on carriers to increase rates, according to analysis by Stifel Nicolaus.
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Indecisive Energy Market is ‘Harft,’ Says Marsh
The energy market is difficult to read, says a new report by Marsh—so much so that one official classified current conditions as a “harft” market.
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LexisNexis Plans to Sell Off Insurance Software Business to Private Equity Firm
LexisNexis Risk Solutions has entered into a definitive agreement to sell its insurance software solutions business to the San Francisco-based private-equity firm Genstar Capital.
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State Auto to Seek Homeowners Rate, Quota Share Reinsurance
State Auto Financial Corp.’s CEO says the insurer will seek 20 percent price increases in 2012 in order to keep up with historic loss trends and the company is turning to the reinsurance market for a quota-share treaty.
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NAIC Meeting: Compromise Nears for Surplus-Lines Premium Tax Allocation
The outline for a compromise over a uniform mechanism to implement the surplus-lines and reinsurance-modernization law emerged during the National Association of Insurance Commissioner’s fall meeting on Oct. 28.
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P&C Industry Looks to Limit FSOC Authority
It is unnecessary for P&C insurance companies to be overseen by the Financial Stability Oversight Council as potentially “systemically significant,” and Congress should move to take away that authority, NAMIC contends.
Opinion
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Offering Thanks
In honor of the national holiday that coincides with this issue of NU, we thought we’d serve up a feast of items about which P&C pros (and NU’s editors) can be thankful.
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D&O Liability Coverage for Private Firms: A Case of Nice, or Necessary?
Directors & officers' liability insurance has been pushed onto the radar by the recession and national headlines, but too many private businesses still view it as a nicety.
