Higher Gas Prices, Lighter Vehicles Could Mean Higher Insurance Costs
National News • August 27, 2008
The cost of auto injury claims involving lighter-weight vehicles tends to be higher than the cost of claims involving heavy vehicles, according to new research from the Insurance Research ...
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Subject: To Nobody
Posted On: August 28, 2008, 2:03 pm CDT
Posted By: Pud
Comment:
Read todays headlines:
The U.S. property/casualty insurance industry reported mixed results in the first six months of 2008, according to a new Fitch report. Profitability declined due to poor investment performance and deteriorating accident-year underwriting results, which were partially offset by favorable prior years' loss reserve development.
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While competitive factors are likely to promote further deterioration in rates, Fitch expects most insurers in its publicly traded universe to post a calendar-year underwriting profit in 2008, while accident-year results will shift closer to breakeven, assuming catastrophe activity in the second half of the year approximates historical averages.
Fitch continues to expect that insurers' overall profits will decline in 2008 and that the industry will struggle to produce an adequate return on capital, which Fitch estimates for most insurers as a net return on average equity of between 11 percent and 12 percent.
Subject: To Nobody
The U.S. property/casualty insurance industry reported mixed results in the first six months of 2008, according to a new Fitch report. Profitability declined due to poor investment performance and deteriorating accident-year underwriting results, which were partially offset by favorable prior years' loss reserve development.
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While competitive factors are likely to promote further deterioration in rates, Fitch expects most insurers in its publicly traded universe to post a calendar-year underwriting profit in 2008, while accident-year results will shift closer to breakeven, assuming catastrophe activity in the second half of the year approximates historical averages.
Fitch continues to expect that insurers' overall profits will decline in 2008 and that the industry will struggle to produce an adequate return on capital, which Fitch estimates for most insurers as a net return on average equity of between 11 percent and 12 percent.