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Karen Beier

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The whole picture could change dramatically in the coming quarters.

There is increased competition as carriers all vie for renewals in this profitable market. The natural market reaction is to drive down prices.

There is increased competition as carriers all vie for renewals in this profitable market. The natural market reaction is to drive down prices. But the devastation of Katrina and Rita is only now beginning to translate into higher renewal prices. The whole picture could change dramatically in the coming quarters.

The insurance market shrugged off the record hurricane losses of 2004, but the combined impact of Katrina, Rita and Wilma was clearly more than the market was ready to absorb in 2005. So far it seems only property insurance has been affected, but it remains to be seen if the rise in property rates will be the catalyst for an overall upturn in prices and a harder market.

The insurance market understandably appears a little unsettled by the massive hurricane losses of 2005. However, risk managers may experience further softening in the casualty market. Barring more major catastrophes, premiums should fall further this year.

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Hur funkar det?
Vanliga frågor
Om samlingen
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