Hard Market Carries Big Risks

To The Editor:

For those of us who have been around the property-casualty industry for a long time–and that includes most of us, since the young people are staying away in droves–the memory of a cover of Time magazine in 1984 is still vivid. “Sorry, America, Your Insurance is Cancelled” read the headline, and the articles inside documented horror story after horror story about communities and businesses that either couldn’t get any coverage or could not afford the coverage they were offered.

Memory fades a little regarding what happened next, but we need to force ourselves to remember. We need to remember how the budding alternative market that had taken root in California in the late 1970s came into full bloom in 1985 and 1986 and 1987. We need to remember that in the following years as much as 20 percent of the available commercial insurance market moved to captives and paid-loss retros and large-deductibles and other forms of self-insurance.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?



Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.