Karen Beier
Karen Beier
appears casualty experience fall further hurricane insurance losses major managers market massive risk unsettled
The insurance market understandably appears a little unsettled by the massive hurricane losses of 2005. However, risk managers may experience further softening in the casualty market. Barring more major catastrophes, premiums should fall further this year.
absorb catalyst clearly combined far harder hurricane impact insurance losses market overall prices property rates ready record remains rise rita seems seen
The insurance market shrugged off the record hurricane losses of 2004, but the combined impact of Katrina, Rita and Wilma was clearly more than the market was ready to absorb in 2005. So far it seems only property insurance has been affected, but it remains to be seen if the rise in property rates will be the catalyst for an overall upturn in prices and a harder market.
carriers competition drive increased market natural profitable reaction
There is increased competition as carriers all vie for renewals in this profitable market. The natural market reaction is to drive down prices.