P/C Insurers’ Capital at ‘Historically High’ Levels: Fitch

December 14, 2012

  • December 14, 2012 at 3:29 pm
    J.S. says:
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    Record surplus. A struggling economy, especially for small business owners. I know what we, the insurance industry, can do to help. Let’s raise rates (many carriers 20-25%) putting even more pressure on the business owner. Aren’t we grand!

  • December 14, 2012 at 4:52 pm
    Blu Lightning says:
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    @JS-Surplus is not profit. Its the monies set aside to pay claims. Note the forcasted C/R. In an era of unprecedented low returns on any kind of investment(check your CD or savings account) this kind of C/R is unsustainable-in all honesty, to maintain surplus at the low levels of investment returns, a C/R of 94 or 95 is needed

    • December 15, 2012 at 2:54 pm
      J.S. says:
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      I’m fully aware of what surplus is but surplus at record levels means, by definition, that it’s higher than last year, thus, despite a bad combined ratio, the industry is making a PROFIT.

      I am also fully aware of Bob Hartwig’s “A 100% Combined Ratio is Not What It Used to Be” slide and what that means long term. And while I agree that ROI is not where we would like it, I question whether this is the time to be pounding small businesses with huge increases. Many are already on the edge, why do we need to tip them over?

      • December 17, 2012 at 11:37 am
        youngin' says:
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        Growth in industry surplus does NOT automatically mean the industry is making a profit.



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