Hard Market No Where to be Found

Well, the experts who have been saying that 2011 will see the turn in the commercial insurance market are backing off on their prediction. Capacity is extremely high in the industry and demand for insurance is at an all time low. In addition claim fequency is down. This is a recipi for more and more competition in the marketplace. Now, as the economy starts a rebound, and claims go up and demand go up , the capacity the industry is sitting on will start to erode quickly because rates are so suppressed. The industry will have a hard time increasing rates at the pace their capacity will be dwindling thus causing a crisis. This is what I see happening. Heaven forbid if the crisis is severe enough to get the headlines. The Feds are looking for an insurance crisis to get thier hands on regulation. Oh what an interesting time it is in the commerical insurance industry. Until next time know your risks and be careful out there.   K

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