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!
@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
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?
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!
@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
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?
Growth in industry surplus does NOT automatically mean the industry is making a profit.