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ISO: U.S. P/C Industry's First Net Gain on Underwriting Since '78 Moves Surplus to Record High
National News • July 14, 2005
Ending a 26-year drought, insurers posted a $5 billion net profit on underwriting in 2004, despite slowing premium growth and a deluge of catastrophe losses.
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| Subject | Posted By | Posted On |
|---|---|---|
| RE: Actuarially Proper Premium Values-Claim Settlement Pract | LL | Jul 15, 2005, 6:37 pm |
| Surplus Extreme | R Hatch | Jul 15, 2005, 2:31 pm |
| SURPLUS Success - embarrasing? | Hal | Jul 15, 2005, 9:34 am |
| Actuarially Proper Premium Values-Claim Settlement Practices | Roger Poe | Jul 14, 2005, 8:39 pm |
| Back to article | ||
Subject: SURPLUS Success - embarrasing?
The primary and original duty of insurance commissioners, dating from Elizur Wright. Wright was an actuary and math wizard, not a banker. As the first insurance commissioner he set out to assure the solvency of insurance companies, understanding that the worst insurance result is insolvency when you turn in your claim.
Today insurance commissioners show up after the companies are dead on their feet. Showing up after the patient is dead is not being a helpful doctor.
The problem is that guarantying solvency does not make for a political stepping stone. "I made your insurance rates go up so your company could pay claims" just won't fly well as a campaign platform.
So the result is that insurance companies survive at about the same rate with or without interference from a regulator.