So these companies are loosing money and buying business. Premium’s are already at an all time low for the past 30 years. Rates are going up in 09 and hopefully so do underwriting standards.
Don’t expect it until the end of 2009. There are too many carriers still making money and sitting fat on surplus. Yes, some carriers will be firm, but there are many others waiting in line to take those accounts that are sent to the market with increased pricing. Mark my words – plenty of carriers.
Hard Market is already happening. Depends on the lines of insurance and the types of risks you are discussing.
For instance:
Marine Cargo Insurance – Worldwide
Property Insurance in CA, TX, LA
Workers Comp – Nationwide
I have been monitoring the situation since Feb 08 and my forecast is the 2nd Quarter of 09.
What I don’t understand is why people are afraid of a hard market. Don’t you agree that Policies should be underwritten properly and carriers should charge the correct amount of premium so claims can be paid?
I work for a hard market company. We certainly are happy to see this coming, if it really is coming. We have always thought genuine underwriting and adequate premiums we reasonably important. Silly us.
Don’t wish too hard. There will be some slight hardening as mentioned in certain classes, lines of business or industry. But the main street will remain very soft and competitive through 2009. Yes there are some carriers getting ready to post 105+, but there are just as many carriers making good money today. It won’t get softer, but it will stay soft.
I’m with E.L.I. Some well managed carriers are still raking in some profit while the ones who cannot keep up will go out of business. We need some consistant quarters of 105+. This time next year, we will be singing a different and more joyous tune as things start to turn upward.
So these companies are loosing money and buying business. Premium’s are already at an all time low for the past 30 years. Rates are going up in 09 and hopefully so do underwriting standards.
Don’t expect it until the end of 2009. There are too many carriers still making money and sitting fat on surplus. Yes, some carriers will be firm, but there are many others waiting in line to take those accounts that are sent to the market with increased pricing. Mark my words – plenty of carriers.
Hard Market is already happening. Depends on the lines of insurance and the types of risks you are discussing.
For instance:
Marine Cargo Insurance – Worldwide
Property Insurance in CA, TX, LA
Workers Comp – Nationwide
I have been monitoring the situation since Feb 08 and my forecast is the 2nd Quarter of 09.
What I don’t understand is why people are afraid of a hard market. Don’t you agree that Policies should be underwritten properly and carriers should charge the correct amount of premium so claims can be paid?
I work for a hard market company. We certainly are happy to see this coming, if it really is coming. We have always thought genuine underwriting and adequate premiums we reasonably important. Silly us.
Don’t wish too hard. There will be some slight hardening as mentioned in certain classes, lines of business or industry. But the main street will remain very soft and competitive through 2009. Yes there are some carriers getting ready to post 105+, but there are just as many carriers making good money today. It won’t get softer, but it will stay soft.
I’m with E.L.I. Some well managed carriers are still raking in some profit while the ones who cannot keep up will go out of business. We need some consistant quarters of 105+. This time next year, we will be singing a different and more joyous tune as things start to turn upward.