Latest News
Winter 2009 - The Great Unknown
The "soft" commercial insurance marketplace is coming to an end, but given the present economic chaos it is impossible to predict how much or when prices will increase. Never, in years, has the short term and long term insurance future been more difficult to predict. However, consider the following:
- The combined operating ratios for most insurance companies continue to increase, with the overall loss and expense ratios averaging over 100%.
- Investments and stock values have deteriorated to the point that they threaten the viability of many insurance companies.
- Banks have, at least temporarily, lost interest in agency or company acquisitions but it is unknown whether the federal bail out funds might be diverted for that purpose.
- Coastal property is still difficult to insure with various protection deductibles required.
- Workers' Compensation claims frequency is down but medical costs and severity is up. It is not known at this time how much the economic problems will affect this line of insurance.
2009 will pose both an opportunity and a challenge for the commercial insurance buyer and their agent. Make sure that your agent represents a number of regional and national insurance companies so that you will have the option to buy the best combination of price, coverage, and service.