this pretty much confirms no hard market. NOTE: prices/premiums will stabilize. That simply means that they rates won’t go down anymore. Fitch doesn’t project hardening.
For those of you hoping and wishing – SORRY! And for those of you actually jumping the gun and raising rates – WAKE UP!!
Finally, for those of you (you know who you are) that need rate because your Combined is above 105, and because your underwriting SUCKS – BYE, BYE !!!
I agree with your comment. I am an underwriter and ‘try’ to apply sound uw principals….However, my decision are constantly turned over because we need premium…..to overcome our 100+ combined. Sound familiar?
As we have seen over the past 18 months, the rating companies have proved to be worthless..They never told us in advance that so many carriers were in financial distress.
Perhaps this is because carriers, and many other types of businesses, have been lying to the rating agencies but this does not excuse the rating agencies from performing their own investigations and due diligence.
So as the rating agencies say that a hard market isn’t coming, I don’t believe a word they say.
Basic insurance financial fundamentals say, that the premiums paid & investment revenue received must be greater than the losses & administrative expenses paid..If not, then premiums must increase or the carrier will go under.
So..Watch for the hard market starting in early – mid 2009…
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this pretty much confirms no hard market. NOTE: prices/premiums will stabilize. That simply means that they rates won’t go down anymore. Fitch doesn’t project hardening.
For those of you hoping and wishing – SORRY! And for those of you actually jumping the gun and raising rates – WAKE UP!!
Finally, for those of you (you know who you are) that need rate because your Combined is above 105, and because your underwriting SUCKS – BYE, BYE !!!
I agree with your comment. I am an underwriter and ‘try’ to apply sound uw principals….However, my decision are constantly turned over because we need premium…..to overcome our 100+ combined. Sound familiar?
As we have seen over the past 18 months, the rating companies have proved to be worthless..They never told us in advance that so many carriers were in financial distress.
Perhaps this is because carriers, and many other types of businesses, have been lying to the rating agencies but this does not excuse the rating agencies from performing their own investigations and due diligence.
So as the rating agencies say that a hard market isn’t coming, I don’t believe a word they say.
Basic insurance financial fundamentals say, that the premiums paid & investment revenue received must be greater than the losses & administrative expenses paid..If not, then premiums must increase or the carrier will go under.
So..Watch for the hard market starting in early – mid 2009…