David Rains, Managing Director Contact Life, Accident and Health cedent behavior was relatively unchanged at July 1, 2008 renewals. Prices have continued to come down, thanks to several consecutive benign loss years. Rates are beginning to stabilize for some product lines, including medical stop-loss and long-term disability, though the underlying reasons varied with the types ... Continue Reading »
Casualty
Bag Profits Early: Investment Gains Under Pressure
Christopher Klein, Global Head of Business Intelligence Contact Asset-driven losses have put pressure on earnings. Investment gains comprise an important part of carriers’ long-term profits, and financial markets have shown just how volatile this source can be. With net income off 60 percent from the first half of 2007 to the first half of 2008, carrier profitability will b ... Continue Reading »
No Surprises, Rates Continue to Fall: P&C Reinsurance Renewals, July 1, 2008
Christopher Klein, Global Head of Business Intelligence Contact Excess capital caused soft market conditions persisted at July property and casualty renewals. For property-catastrophe covers, risk-adjusted pricing dropped 10 percent to 20 percent relative to July 1, 2007. Quote ranges narrowed, though, as reinsurers responded to the realities of the market. The weakening global ... Continue Reading »
Clashing Conventions: Measuring and Managing Exposure
Emil Metropoulos, Senior Vice President Contact Conventions are fertile ground for risk. With tens of thousands of people in one place, a single act of terror or a natural catastrophe could result in substantial insured losses for workers compensation carriers. But, it has been almost impossible to assign a number to this risk, let alone manage it effectively, since the data ... Continue Reading »
Understanding Unknown Convention Accumulations
Emil Metropoulos, Senior Vice President Contact The continued rise of the convention industry has created a unique clash exposure for workers compensation (re)insurers. Carriers are increasingly familiarizing themselves with “known” accumulations, the risks associated with the day-to-day workplace, since the terror attacks of September 11, 2001. “Unknown” accumulations, on the o ... Continue Reading »
2008 Reinsurance Market Review: Near Misses Call for Caution
Cedents took advantage of a buyer’s market. Many 2008 renewals closed late as cedents held out for lower rates in the continuing soft market. Reinsurers were rewarded not only with lower rates, but often smaller lines. The absence of large catastrophe losses was a key factor in the softening of reinsurance markets. Barring large catastrophe losses in 2008, the downward drift in ... Continue Reading »
