"Specialty Insurance Blog" - 5 new articles
Jobs & InsuranceAs we noted in a prior post (see here), job growth is a critical driver of growth in the insurance business, and new business starts are an important indicator of job growth. Most new jobs come from new businesses and small businesses, and new business starts, often strong at the end of a recession, have not picked up. An article in CFO (see here) talks about whether entrepreneurial activity may or may not increase this time around. Unemployment is high,... Private Equity InsuranceThe insurance market for financial institution D&O has been tightening due to large corporate failures and resulting D&O losses, and this has impacted the market for D&O (directors & officers) and GPL (general partnership liability) insurance coverage for private equity & venture capital groups. Their unique insurance needs present underwriters with a range of exposures. A a series of articles from law firm Debevoise & Plimpton highlights both the changing environment and coverage challenges private equity and venture capital firms... EPL & the RecessionCurrent high unemployment is increasing employment exposure for small and medium sized businesses, and increasing the need for employment practices liability (EPL) insurance. EPL insurance covers claims for wrongful hiring and termination, sexual harassment, and discrimination. Two articles highlight the changing employment environment. The first article, on page 28 in the October 2009 edition of Rough Notes (see here), notes that one in five small businesses will have an EPL lawsuit this year. The second article, in National Underwriter (see... AM Best E&S Insurance ReviewAM Best has released the 2009 review of the excess & surplus lines (E&S) insurance market (see here, PW protected?), called 2009 Special Report, U.S. Surplus Lines – Market Review. The annual review is conducted by AM Best from a grant provided by the Derek Hughes/NAPSLO Educational Foundation and has been produced annually for a number of years. The review notes: Market competition has driven both premiums and profitability down Surplus lines premium totaled $34.4 billion in 2008, while the... Insurance PredictionsDr. Robert P. Hartwig, CPCU, President of the Insurance Information Institute (I.I.I.), provided some insights into the economy and the insurance industry at the recent NAPSLO annual meeting. See his slides here, and a National Underwriter summary here. Some interesting observations: We are facing a recession and a soft market at the same time, which is not typical and has dramatically reduced demand. The economic challenges have changed insurance customer behavior including increased efforts to reduce insurance costs, like shopping,... More Recent Articles |
