Risk & Business

Image by ClevelandSGS via Flickr Based upon anecdotal evidence seen by those of us in the agency workforce, and upon articles such as the recent one in PR-inside.com, it seems that the insurance industry may finally be nearing the end of the nearly 2 years of steady pricing decreases. The article states that " In the first half of 2008 insurer profits declined 57 percent, the industry posted its worst first-half year underwriting performance since 2002, investment returns declined by 18 percent and net written premiums for the industry as a whole were stagnant. Catastrophe losses were double the average of the past decade, " reports Lockton . The article also pointed out that " The repercussions from the big hurricane losses and the meltdown in the financial markets are just beginning to be felt in the property insurance market. Insurance buyers should prepare themselves for a period of uncertainty and volatility in the property insurance market, " says Jim Rube

Karen Weldin Stewart was elected as the next insurance commissioner for the State of Delaware yesterday. Ms Weldin Stewart was elected after her third try at the post. Members of the local Delaware agents association were able to meet Ms. Weldin Stewart during the campaign and I for one came away with a favorable impression of her knowledge and attitude towards the industry. Many of us hope she addresses the workers compensation system, mainly the significant decreases in premium without any sign of the corresponding managed care system that was to be in place. Some states, Florida chiefly among them, have been addressing insurance coverage issues such as flood and other hazards, by mandating the pricing and amount of profit insurance companies are able to charge/earn. While this can work as a populist pitch during the campaign season, they can only serve to drive away insurance companies, something a small state such as ours can ill afford. Here's wishing Ms. Weldi