Mid West Tornados Continue Negative Loss Trends

2011 closed with the majority of commercial insurers with combined ratios in the red and the story continues this year. Already weather disasters have insurers reeling. Loss ratios continue to climb and  we are not even through the first quarter. Talk of hardening rates also continues as insurers are starting to realize they are falling behind the curve. The economy is still however weak and getting a quick turnaround to appropriate rates may be harder than imagined. The scenario that is playing out could be unprecedented for insurance companies. Through out the history of the market,  insurance companies have pretty much gotten their way  however 2012 and going into 2013 may prove one for the record books. Stay tuned !  Until next time be careful out there and know your risks. K

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