Overcapitalized Insurance Co's , The Public is Not Happy

As commerical insurance rates rise the buying insurance public is not happy. The economy has not really improved much and now public groups are acusing insurance companies of profit gouging. The reason is the amount of capital the insurance industry has accumulated. Commercial insurance buyers are more aware of the capitalization of the industry. As rates increase they are asking why? "You have all that capital on the books so take on more risks and keep my premiums in line", this will most likley be the mantra of 2012.  The insurance industry reply to this will point the fingers at regulators and rating agencies as they force the accumulation of reserves to assure future claims paying. So we have an impasse, the buyers who don't understand increase rates with record surplus and the regulators that say sock away more or else....  Stay tuned.  Until next time be careful out there and know your risks. K

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