Premiums at the bottom yet?

Homer T. Browning InsuranceImage by ClevelandSGS via FlickrBased 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 Rubel, Lockton Executive Vice President in New York. Also, a recent article in the FinancialPost.com quoted Charles Brindamour, chief executive of ING Canada Inc., who stated "Mounting losses in the market are taking a toll on insurers' balance sheets and may soon hit clients' pocketbooks via higher premiums." It seems that the business owner shopping for pricing efficiency might want to shop now as signs are beginning to point in the direction of pricing increases in the near future.
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