The property and casualty insurance business isn’t what it used to be. Traditional methods of deciding risk management worked well in its time. According to the managing director of the Wharton Risk Management and Decision Process Center (WRMDPC) in Pennsylvania, the time has come where changing the way the industry calculates risk is essential to its survival. In the property and casualty sector, the traditional notion was that catastrophic events only occurred about every 25 years or so. It also counted on the fact that the risks were, for the…
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Treasury Department wants real life insurance professionals for new committee
The U.S. Treasury Department announced today the creation of a new advisory committee on insurance. The committee will be made up of state regulators and industry officials from all over the country. The Department has issued several notices throughout the U.S. inviting those interested in a position within the committee to apply with the Federal Registrar. The committee is being formed to help the federal government better understand the ramifications of changes made to the existing industry in the country. The plan has garnered support from some of the nation’s…
Read MoreFinancial News: Insurance industry becomes more attractive
The global economy is showing promising signs of recovery, but the recession took a heavy toll on nearly everyone. State governments, in particular, suffered in the wake of the economic calamity. In light of this, some are taking steps to remake themselves to be more attractive to businesses, specifically insurers. Vermont is the latest to join these ranks, joining Utah, South Carolina, Delaware and Hawaii, each making changes to their regulatory policies to bring in big insurers. Many insurance companies partake in a number of business transactions that they would…
Read MoreChecking the insurance market temperature
A recent survey shows that first quarter property and casualty (commercial) rates have fallen another three percent, on average, for most renewals and small to medium business renewals. Most experts believe that it’s still too early to tell if this is due to the disasters in Japan and other countries earlier this year, or if there is another market influence taking place. The slowdown in decreasing rates may be an indicator that prices will start to level off. There have been some slight increases, more noticeable in larger businesses, commercial…
Read MoreSurvey shows top concerns for future world commerce
Over one thousand business CEO’s from around the globe put their two cents worth in on a recent survey. The results of the survey were released at the Risk and Insurance Management Society (RIMS) convention that was held in Vancouver. Corporate experts from 58 countries weighed in on their top business concerns for this year. The survey, given by Aon Risk Solutions proved that economics is mutually dependent on various risk factors; whether it’s in the U.S. or another country on the other side of the globe. Most business professionals…
Read MoreAllianz reports catastrophe losses on the rise but not the root of industry woes
Risk assessment experts at Allianz, one of the largest insurers in the world, have spoken out about the rising costs insurers are experiencing from natural catastrophe, outlining their findings in risk briefing – Allianz Risk Pulse: Focus Natural Catastrophes. With occurrences of severe weather, earthquakes and flooding, many insurance companies are seeing losses due to natural disasters and, according to Allianz, the number of companies experiencing these losses is on the rise. However, the increase may not be due to natural disasters at all. Allianz finds that the growing trend…
Read MoreSo how did the insurance market do in 2010?
The property and casualty sector fared well for 2010; according to a report that was recently released. The financial report for the P/C industry gives the details for the sectors’ rate of return, underwriting, investment results, operating income, policyholder’ surplus and wrapping up with fourth quarter results. The policyholder’s surplus was up to 6.5 percent giving them a 0.6 percent increase from the previous year. This resulted from negative return rates for insurers in mortgage and financial securities, as well as low returns for other insurers. Although insurers net income…
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