Europe’s sovereign-debt crisis could impair the U.S. property and casualty industry’s ability to change the course of the soft market—if it results in the economy falling into another recession, according to one industry consultant.
Commenting on the current state of the insurance marketplace, Charles Ruoff, president of CR Market Strategies Inc., says in a Nov. 28 report that recessions have historically put a damper on the industry’s ability to “alter the direction of soft-market cycles on its own initiative.”
From 1967 through 2009, periods of recession have dramatically affected pretax operating income, Ruoff says, noting that it has fallen as much as 10 percent during these recessionary periods.
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