Though consumers have been seeing steady increases in rates for casualty, property, home, and auto insurance, companies have not seen any notable raises in their own insurance costs. Yet. The sensitivity of businesses to increases for insurance rates runs much deeper, and some new competition has brought some of the business for commercial insurance to Canada. Those two factors have allowed the price of those plans and policies to remain relatively steady over the last few years. However, according to RSA Canada’s chief executive, Rowan Saunders, this trend will not…
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China insurance market growing too fast for domestic insurers to handle
China’s insurance market is experience major growing pains, according to a report from Standard & Poor’s, a credit rating agency based in the U.S. The Chinese market is, by all accounts, enormous and the potential for success in second to none. The full breadth of this potential success, however, is open only to Chinese insurers. Native insurers are now facing demand for coverage that they are having trouble meeting. Many companies, including New China Life, one of the largest life insurers in the country, are plagued with capital shortfalls due…
Read MoreNICB announces Q3 increase in questionable claims by 7 percent
The National Insurance Crime Bureau (NICB) has released its third quarter 2011 results from its referral reason analysis of questionable claims (QC). This report investigates six different types of claim referral reason categories. They are: workers’ compensation, casualty, property, commercial, vehicle, and miscellaneous. It compared the results among the third quarters of every year from 2009 to 2011. Questionable claims are those that are made to member insurance companies of NICB which must be referred to the bureau for closer review and potential investigation as a result of certain red…
Read MoreInsurers spend billions on large weather events from 2011
Insurance companies are continuing to make payments to policyholders who suffered damage from large severe weather events earlier this year. Officials in Missouri have now named the tornado that ripped through Joplin’s center earlier in 2011 as the most expensive insurance event in the history of the state. It has been estimated that insurers have already spent approximately $1.13 billion on claims related to this occurrence, and that when all claims have been made and paid out, that number will have grown to almost $1.9 billion. According to John Huff…
Read MoreNAPCO study shows that the U.S. property insurance market is under stress
A new study from NAPCO LLC, a wholesale broker of commercial property insurance coverage, suggests that the national catastrophe property market is quickly moving away from the soft market conditions that have governed insurance prices for several years. While this is typically good news for some insurers, the study shows that a low demand for insurance coverage may restrict the pricing power of insurers. David Pagoumian, CEO of NAPCO, says that property insurers are under heavy pressure to make profits in the current climate and may face even greater pressures…
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