OLDWICK, N.J. - (Business Wire) By the fall of 2007, pessimists in the insurance industry were predicting that the soft market cycle that was quickly becoming the focus of considerable concern might last into third quarter 2008.
Those pessimists would have sounded like raving optimists at the Risk and Insurance Management Society’s 2008 Conference and Exhibition in San Diego that ended May 1, where senior executives of carriers and brokers alike said that they saw no relief from the downward pressure on rates into 2009 and possibly beyond, into 2010, according to exclusive coverage in BestWeek U.S./Canada.
They described a marketplace filled with carriers—overstuffed with huge amounts of capital amassed over two tremendously profitable years devoid of major natural catastrophes—chasing after each other in a headstrong dash to write business. Then they ran head first into the inevitable brick wall—hacking away at premium rates every step of the way.
“I heard the term, which I thought was an interesting way to describe our industry—we hate prosperity,” FM Global Chairman and Chief Executive Officer Shivan Subramaniam said with a smile. “We don’t know what to do with prosperity, so any time we’re prosperous, we tend to go the other way.”
Also, in BestWeek U.S./Canada:
U.S. mutual accident and health insurers must adapt and evolve to survive in a sector that has driven many of them to niche positions, according to new A.M. Best research, “U.S. Mutual Accident & Health—2007 Market Review.”
Also, in BestWeek Europe:
As the Standard Protection and Indemnity Club adjusts to an evolving market, it is keeping a wary eye on the development of Solvency II.
And in both editions of BestWeek:
The Best’s Global Insurance Composite Index finished the week of May 1 down 10.79% from a year ago. The composite index reflects the performance of 168 insurance stocks. The week’s top stocks were Atlantic American Corp., XL Capital, Conseco, Mitsui Sumitomo Insurance Co., and Philadelphia Consolidated Holding Co.
The bottom five stocks were United American Indemnity, Meadowbrook Insurance Group, Selective Insurance Group, Tower Group, and Meritz Fire & Marine Insurance Co.
BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, please call A.M. Best’s customer service department at (908) 439-2200, ext. 5742, or e-mail your request to customer_service@ambest.com.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
A.M. Best Co.
Caroline Saucer, 908-439-2200, ext. 5774
caroline.saucer@ambest.com
