Despite two major hurricanes and a global credit crisis, the relentless soft commercial insurance market continued in the third quarter–although falling insurance industry net income may signal a coming turn in the pricing cycle, the “Risk and Insurance Management Society Benchmark Survey” found.
“Frankly, the industry was pretty–and still remains somewhat–overcapitalized, so it's going to take a couple of quarters of losses before we ring out that excess capitalization,” Dave Bradford, chief knowledge officer at Advisen, told National Underwriter. Advisen performs and analyzes the survey of North American corporate risk managers for RIMS.
Although he said he was not surprised by the findings, he added he was “maybe a little bit surprised just how much property and general liability [rates] had come down–but we were expecting to see some fairly significant softening in this quarter.”
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