Tougher U.S. Commercial Market Conditions in 2012: Marsh

January 25, 2012

  • January 26, 2012 at 1:35 pm
    RetiredUW says:
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    More wishful thinking for a self-fulfilling prophecy? Bidmead must have played golf with Jay Fishman at Augusta so they could get their stories in sync.

    I sure hope they’re both right, though.

  • January 26, 2012 at 2:36 pm
    Agent says:
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    Marsh should know the trends since they are in bed with many of the big boy carriers. Fishman and his Travelers boys do like to set the trend in taking rate and expect the others to fall right into line. It didn’t work out so well in Personal Lines and they lost a lot of business when the other leading markets didn’t follow. Taking rate in this economy is a dangerous thing to do because 100% of nothing is still nothing.

  • January 27, 2012 at 11:47 am
    Person says:
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    How will commercial market conditions be ‘tougher’ in 2012 if rates are increasing slightly? Perhaps that is the perspective of brokers and agents trying to compete with the higher prices? Bad title!

    Exceptions for D&O and E&O won’t depress overall market rates. Regardless, rate changes should theoretically balance against claim cost changes, and profits should remain fairly constant, save for unexpected catastrophes. So, it’s all dependent on catastrophe claim projections being accurate, and on underwriters believing the projected costs.

    So, we’re back to reviewing the level of capitalization in the industry to project rate movements and profits.



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