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, New Jersey 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, said Pagoumian.
The “turbulence” in the property insurance market during 2006 stood in stark contrast to the relatively calm weather and earthquake conditions during the year, added Pagoumian. “After the severe retrenchment from catastrophe-prone zones that followed a record $62 billion in insured catastrophe losses in 2005, established insurers are analyzing how best to deploy their newly replenished capital for growth under difficult conditions.”
The March report is titled “Dazed and Confused” and is part of the NAPCO “State of the Market” Property Insurance Insights series. The report includes data on catastrophic property insurance trends and analysis of weather, earthquake, terrorism and other factors affecting the large property insurance marketplace.
The report can be found online at www.NAPCOllc.com.
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