Even a year of profitability has not settled the large property insurance market for buyers, especially for catastrophic coverage near coastlines and in earthquake zones, finds a new research report from New Jersey wholesale insurance broker NAPCO, LLC.
“While the chaos and dysfunction that followed in the wake of Hurricane Katrina have moderated, capacity is still tight and prices are still high” in 2007, said David Pagoumian, president and chief operating officer of NAPCO, a wholesale insurance brokerage firm based in Edison, N. J., and specializing in property cover.
In this environment, agents and brokers who take a wait-and-see position may miss chances for improving terms and conditions, the report noted.
“Opportunities exist to improve property insurance programs. Uncovering them, however, is not easy,” Pagoumian stated. “Catastrophe-exposed property remains the key exception to the trend of abundant capacity and softening prices” in the property/casualty insurance industry, he added.
The March report is titled “Dazed and Confused” and can be found online at www.NAPCOllc.com.