X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Previously, you said you felt the greatest challenges to surplus lines in 2013 lie in the standard market’s ability to enforce discipline in pricing, terms and conditions, but that discipline has not always prevailed. Do you think it has this year? What are the results that you’ve seen?

The overall insurance market responds to economic and financial conditions. We have seen better discipline as returns on investment income continue to be difficult to achieve and combined ratios have lingered at levels that are higher than most would like. Reserve redundancy is beginning to climb again, however, and the industry remains overcapitalized. Many companies are sitting on cash that needs to be deployed. I think we will see some downward pressure on rates in the coming year. Reinsurance treaty renewals seem to be holding steady or in some cases are coming down. All of these factors speak to carriers’ appetites, and that drives what is available in the specialty markets.

propertycasualty360

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

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.