The performance of both of the major coverages written by predominantly personal lines insurers – automobile and homeowners multi-peril insurance – have begun to improve, and there is the prospect of continued improvement through at least 2003, according to a report published by Standard & Poor’s.
“The industry’s capital grew at a great rate in the mid-to-late 1990s,” Standard & Poor’s credit analyst Charles Titterton noted. “This led to price wars, which drove pricing adequacy down.” Today, however, the industry’s capitalization is not as high, and there are a number of major insurers that have become capital constrained and are not in a position to compete on price. As a result, pricing adequacy and – consequently – overall industry performance have improved.
“Industry Report Card: U.S. Personal Lines Insurance” is available on RatingsDirect, Standard & Poor’s Web-based credit analysis system, at www.ratingsdirect.com
Topics Carriers
Was this article valuable?
Here are more articles you may enjoy.
US Efforts to End Iran War Stumble as Ship Seized Near UAE 
Florida Governor Signs Bill Dropping Building Permits for Work Valued at $7,500 or Less 
Florida Surplus Lines’ HO Premiums Now Average About the Same as Admitted Market 
Florida’s Ailing $6 Billion Rail Line Has Debt Vultures Circling 
