Burand’s State of P/C Insurance Industry: How P/C Insurance is Becoming Less Valuable

By | July 4, 2018

  • July 5, 2018 at 11:03 am
    Wondering says:
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    ..”fewer blue collar jobs”….what is going to happen to the folks that make a living in industries labeled “blue collar?”

    • July 5, 2018 at 2:59 pm
      Agent says:
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      Fewer blue collar jobs????????????????? These people aren’t paying much attention, are they? This period is all about creating more and more jobs and blue collar is the center piece of manufacturing, construction etc. Thank God we have a President who is looking to MAGA and create American jobs for Americans.

      • July 5, 2018 at 4:13 pm
        Puzzled in PA says:
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        Unfortunately, everywhere I turn, the squeeze is being put onto the middle class. Hi-rollers like Mr. Trump don’t need the breaks since they have all the assets. Lower income can’t tap into the breaks since they don’t have the cash. So where does it all come from? I understand MAGA mantra and I have no issues with the propaganda machine except for politicians and government workers who don’t have to play under the same game that they are legislating/controlling for the rest of the country…and they got where they are on the backs of the very people they are penalizing now. Take away property tax credit, reduce medical expenses under the IRS itemized deduction rule, take away college interest payments from students (but don’t take away the debt – NOOO!). Sorry for the soap-boxing. I feel better now…not richer, just better.

  • July 5, 2018 at 7:24 pm
    Joseph S Harrington says:
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    Chris is very thorough and forward-thinking, as always, but I don’t think insurance will be less valuable in the future, especially if we don’t confuse value with price, as Chris wisely warns us to avoid.

    Improvements in building and product safety, loss control, and risk management will surely make us safer, but there will still be risks, and the frontier of insurance, so to speak, will expand into ever more varied forms of risk.

    If you told a group of “fire” insurers 150 years ago that we would have fire resistant construction concentrated in communities with full-time professional firefighters, one might have thought the fire insurance business would dwindle in importance. Of course, that’s not what happened. “Fire insurance” expanded to cover a growing range of perils, and to be packaged with liability insurance.

    Today, it’s possible to imagine a business forgoing traditional insurance in order to buy coverage more pressing to its needs. A small but high-value software business might choose to retain its risk for damage to a building, equipment, and furnishings, if that’s what it takes to acquire the terms and limits needed to protect its cloud-based intellectual property and customer records. That’s not always possible due to product linkages and minimum premiums, but one can imagine it.

    I envision an future where insurance responds less and less to physical damage and more and more to economic and liability loss.

    • July 6, 2018 at 8:11 am
      CL PM says:
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      JSH – agree with all you said but there is another important factor sustaining the value of insurance. As long as law schools pump out graduates, there are attorneys seeking income. And, as long as many Americans blame everyone else for their troubles and are willing to sue when something goes wrong, insurance will have value. Over 30+ years, I am impressed at the ingenuity of plaintiff attorneys in attacking policy language to find coverage where none was thought to exist. While I disagree with the litigious mentality, I’m thankful it keeps me employed. And isn’t that just a little warped?

  • July 12, 2018 at 3:07 pm
    Rick says:
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    We need destruction and mayhem to occur from time to time just as cardiologists need heart disease. The nature of what we do. Eutopia would put us out of business (along with many others)

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