P/C CEOs Say Low Interest Rates Push Need for Stringent Underwriting

By Young Ha | January 17, 2012

  • January 21, 2012 at 9:50 am
    Systemic risk says:
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    These insurance company CEO’s are living in fantasy, but of course they can, because they are pulling in the big salaries! Return to the real world please. Zero interest rates for investment are not bringing on higher premium rates. Simply put, there still is too much capacity. The big carriers were bailed out in the last financial crisis, instead of being allowed to fail or shrink. That is why we are not seeing the usual premium cycle recovery & will not.
    We are also still seeing ridiculous cash flow underwriting, as the big boys realized that they might get bailed out again, despite their reckless behavior. Real underwriters call this moral hazard!



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