Risk

The Future of U.S. Property and Casualty Insurance Industry: Six Feet Under?

The popular Charles Dickens quotation, "it was the best of times, it was the worst of times," would seem to aptly apply when analyzing the financial performance of the North American property and casualty insurance industry over recent years. In fact, the quotation could well be the industry's tombstone inscription based on analyst, broker, risk management and senior industry management perspectives presented at the National Insurance Leadership Symposium, which was recently held in San Francisco. Looking ahead, analysts and company CEOs predict increased financial volatility as capital continues to hemorrhage from the industry at both the primary and reinsurance levels as a result of ongoing underwriting losses, adverse reserving adjustments and the plummeting value of investment holdings. Does the traditional p&c insurance industry have a future?

April 30, 2003

9 min read

Risk

Views (May 01, 2003)

D&D Disability Management, Fair Medicals and Viewpoint Medical Services Inc. have formed a strategic alliance to provide a “one stop shop” for insurance clients. “This alliance reflects the ever-changing needs of the marketplace – people are requesting an easier approach to the assessment process,” explains Lou D-Angelo, president of D&D Disability. The new central number […]

April 30, 2003

3 min read

Risk

Auto Insurance, The Industry’s Orphan Annie

With auto insurance accounting for nearly half of all premiums written in Canada, this once "darling" of the industry has now become the "wayward child" disowned by insurers as underwriting losses stemming primarily from soft-tissue bodily injury claims and tort costs continue to spiral out of control countrywide. Notably, insurers were forced to adjust their reserves by nearly two-thirds of a billion dollars last year as a result of an adverse development on auto business. Although several of the provinces are currently addressing legislative product reform initiatives in a bid to curtail auto losses and the barrage of premium hikes implemented by the insurance industry last year, insurers remain cautious in their market dealings, with many companies having "capped" writing of new business. The result has been a dearth of underwriting capacity, with Ontario and the Atlantic Canada region being particularly hard hit. As insurers continue to "shun auto" in wait of political reform, many in the industry wonder whether the product will ever regain attraction.

April 30, 2003

13 min read

Risk

The FA Faces “Repopulation” Growth Dilemma

The Facility Association (FA), the industry’s pool to insure high-risk drivers, says its overall marketshare rose year-on-year by 64% to 2.8% for 2002 versus the 1.7% share for the year prior. The FA’s combined ratio also hit a high of 160% for 2002 compared with the 137% ratio reported for the previous year. The FA’s […]

April 30, 2003

2 min read

RIMS Conference 2003: The Age of Risk

The concept of "risk" has been at the center of public attention since the events of 9/11 through corporate scandals and most recently, with the spread of severe acute respiratory syndrome (SARS). And, risk managers, meeting in Chicago recently for this year's Risk & Insurance Management Society (RIMS) conference, are more than aware of the impact this new "age of risk" is having on premiums. However, despite these "trying times", risk mangers have evolved within the corporate culture.

April 30, 2003

7 min read

On The Move (May 01, 2003)

Royal & SunAlliance Insurance Co. of Canada has named Rowan Saunders as vice president, personal insurance. Saunders has been with Royal & SunAlliance for 15 years, most recently as president of Agilon Financial. The Centre for Study of Insurance Operations announces the departure of president Klaas Westera. Interim general manager is Marhsall Lee, director of […]

April 30, 2003

2 min read

Results deteriorate, marketshare rises for Facility

The industry’s pool for high-risk auto insurance is seeing its marketshare increase, and its combined ratios deteriorate, despite attempts to raise premiums.At its agm in Toronto today, the Facility Association (FA) told member insurers that across the country marketshare is up 2.85% versus 1.76% last year, and the combined ratio has hit 160% versus 137% […]

3 min read

Moody’s predicts stability in U.S. personal lines

In its annual market report, Moody’s Investors Service is predicting stability in the U.S. personal lines p&c insurance market. The relatively strong risk capitalization level, the impact of premium increases and stricter underwriting are all having an effect on 2002 yearend combined ratios, Moody’s says.There is a sense that insurers have successfully adopted the strategy […]

1 min read

U.S. commercial pricing shows signs of stability: CAIB

Brokers and agents in the U.S. are reporting signs of more stable pricing in the commercial p&c market, according to a survey by the Council of Insurance Agents and Brokers (CIAB). In its quarterly “Market Index”, the CIAB finds premiums are moderating, although about two-thirds of small, medium and large accounts are still seeing price […]

2 min read