William R. Berkley says reserve deficiencies are driving the need for the market to increase rates—and that for some companies, the ability to take corrective actions will decrease.

Prior-year reserve deficits, especially among W.R. Berkley Corp.'s small and midsize competitors, are a “snowball going  downhill,” the chairman and CEO said during a third-quarter earnings conference call. 

“The abilities [of these companies] to continue on the run will diminish,” Berkley added, predicting solvency issues for some smaller companies.

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