The Elusive Market Turn
As we start the new year, the elusive market turn is on the minds of all insurance professionals. The 2009 combination of a tough economy and an intensely competitive insurance market was not kind to most insurance organizations, and 2010 is not showing any signs of change. So when will a change come?
One underwriter commented in late 2008 that the change would occur on 1/1/09 because prices were too low. Obviously wrong.
William R. Berkley, chairman and chief executive officer of WR Berkley Corp., sees a turn in the first half of 2010 (see here, here or here, from late 2009):
At current pricing levels with existing low interest rates, we believe the industry is operating at a net loss on an accident year basis; and a turn in the cycle is inevitable. We
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