Good Underwriting or Bad Economy? Insurance Companies Posting Huge Profits

I read an article in the Insurance Journal today by Chris Burand regarding insurance companies posting big profits. Chris, you nailed it!  Though the carriers may assume it is good underwriting, I agree with Chris that it is just low losses due to the poor economy, and luck. When I meet with my clients and talk about risk and insurance, right now their exposures are really low. With risk exposures low, claims are down significantly. Also companies have pushed services to the agent that at one time were done by the insurance carrier. This helps the carrier significantly in their expenses but hurts agents. As the insurance industry continues shift costs down to the agents and has the good fortune of low claims in a shrinking economy, profits will continue for the insurance companies. Until next time be careful out there and know your risks. K

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