State Farm General Insurance Company’s financial strength rating (FSR) and issuer credit rating (ICR) have been revised by A.M. Best Co., upgrading them from their previous “A-“ (Excellent) to a current “A” (Excellent), in both cases. State Farm Group and State Farm Life Group and their members have also received an FSR and ICR of “A++” (Superior) by Best. State Farm Fire and Casualty Company in Dallas, State Farm Indemnity Group, and State Farm International Life Insurance Company, Ltd, also had had their FSR and ICR affirmed by Best. All…
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This year’s hurricane predictions are a big concern for insurance industry
Risk Management Solutions, a world leader in catastrophic risk modeling, has released a new study regarding hurricanes that has sent ripples of concern throughout the insurance industry. Hurricane season is here and it is expected that several major hurricanes will form in the Atlantic Ocean on their way to Florida. The study suggests that if even one of these hurricanes makes landfall and forces its way to the interior of the state, the damage would be unprecedented. This has caused many insurers in Florida to speculate how the report could…
Read MoreRisk Management Services hurricane catastrophe model approved by Florida Commission
The residential property insurance marketplace in the state of Florida is expected to face an even greater amount of volatility after the modeling commission for the state approved the use of a new catastrophe model by Risk Management Services (RMS). The RMS U.S. Model Version 11.0 was approved by the Florida Commission on Hurricane Loss Projection Methodology, which allows insurance companies to use it for the calculation of the potential exposure to hurricane loss. That said, this model has not been without controversy, especially in terms of its changes to…
Read MoreHigher reinsurance rates predicted
Despite record losses in the first quarter of 2011 and a hurricane season predicted to be exceedingly active, the reinsurance industry is in good spirits. While several insurance companies are dreading hurricanes reaching land, reinsurers expect that one storm causing extensive losses could mark the turning point of the insurance pricing cycle toward their favor. This would mean that higher reinsurance rates, a fact that would go a long way in helping the industry recover from a disastrous first quarter. Henry Keeling, CEO of Guy Carpenter’s International operations, recently attended…
Read MoreAllstate Insurance growth outlook
Allstate is looking to improve its home and auto insurance units by 2013. Executives at the massive insurance company spoke with investors the other day regarding the matter, saying that focusing on these units will help them recover from losses earlier this year. Allstate’s auto insurance unit has been hemorrhaging clients for three consecutive years, a trend that executives expect to continue throughout 2011, only to see modest growth again in 2013. The renewed focus on these units comes after Allstate’s CEO, Tom Wilson, reported “inadequate returns.” As far as…
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