Liability Insurance Shows Signs of Deteriorating Performance: Conning

The benign period for liability insurance results may have run its course. Current trends in loss frequency, tort filings, and reserve releases suggest that an inflection point may have been reached, according to a new study by Conning.

“The U.S. liability insurance front has been relatively quiet in recent years,” said Jerry Theodorou, analyst at Conning. “Decreasing loss frequency and an ample reserve position have supported satisfactory results even in the face of falling premium rates in the past decade’s soft market. Our analysis indicates, however, that the benign period for liability insurance results may be coming to an end. If current trends continue, the tort environment is expected to worsen for the defense bar, with adverse loss frequency and severity trends likely emerging for insurers.” Read more..

[Ref: Insurance Journal Nov 29, 2012]

Monsters Under the Bed !

Neither insurance policyholders nor courts look kindly upon exclusions from the broad coverage provided by insurance policies. Policyholders often balk at exclusions when preparing to pay their hard-earned dollars to buy insurance policies, and courts apply favorable rules of insurance policy interpretation to prevent the improper overuse of exclusions from the coverage provided by insurance policies.Read more..

 (Ref: Insurance Journal, Nov 19, 2012)

Insurer ING US Files for IPO

ING U.S. Inc, a unit of Dutch financial services group ING Groep NV, filed to raise up to $100 million in an initial public offering as its parent complies with a European Union mandate to split its businesses.

ING Groep is splitting its banking and insurance operations as part of a restructuring deal with the European Commission, turning into a smaller Europe-focused bank. Read more.. 

(Ref: Insurance Journal, November 12, 2012)

Flood Insurance Still Relatively Rare in Northeast

Many homeowners who suffered losses because of flooding from Hurricane Sandy are likely to find themselves out of luck. Standard homeowners policies don’t cover flooding damage, and the vast majority of homeowners don’t have flood insurance.

Yet it’s likely that many Northeasterners will purchase it in coming months, hoping they’ll be covered the next time around, at a cost averaging around $600 a year. Read more..

(ref: Insurance Journal, Oct 31, 2012)