Tuesday, November 11, 2008

Money in the Bank

The good news is that the elections are finally over, holidays are quickly approaching and, it looks like the soft market that’s been driving all sides of the commercial insurance sector crazy may finally take a turn early next year.

Reinsurer and carrier underwriting results have dramatically deteriorated over the past year, excess reserves seem to have been depleted, and investment income for many has gone into the loss column.

Under normal circumstances I would see this tightening of the market (rates) to bode well for those of us in this sector, as all sides (retail, wholesale, carrier) start making more money.

But... the economy will have to stabilize before real improvement becomes noticeable.

Harvey Dorland