Declarations

Economic outlook

“The challenge for both the Federal Reserve Board and the U.S. economy is that this period of sub-par growth is likely to have little impact on inflation and short-term interest rates.”

Gail D. Fosler, executive vice president and chief economist of the The Conference Board, a research and business membership organization, comments on the state of the economy. She said that economic indicators are now pointing to a period of slow growth ahead in the U.S., but not a recession. On interest rates she said that rather than coming down, they are likely to remain high for an extended period or even go up. Her analysis appears in StraightTalk, The Conference Board newsletter.

Rates upward

“Homeowners insurers are in a challenging position. Rating agencies are taking an even-closer look at catastrophe risk as they assess insurers’ capital adequacy, meteorologists and risk modeling firms expect more and stronger hurricanes at least in the near term, and the increases in homeowners insurance rates that we’ve seen thus far aren’t enough to provide insurers the opportunity to earn back their cost of capital.”

Bryon G. Ehrhart, president and chief executive officer of Aon Re Services Inc., provides comments on homeowner insurance based on the disasters of the last year. Ehrhart said that homeowners insurers must keep more capital on hand to meet industry standards than was necessary only a year ago. As a result, Aon Re is helping clients to understand the new capital requirements and needed rate actions, he said. Increases in homeowners insurance rates have not been sufficient thus far to provide an adequate return on equity on homeowners insurance, making further increases necessary, according to an analysis by Aon Re. Aon Re’s findings are highlighted in its 2006 Homeowners Return on Equity Outlook.

Rock on

“For aging rockers like myself, that’s available … as well as the state’s good beef and country music as attractions.”

Given the chance during a debate this week to say why tourists should choose Kansas, Gov. Kathleen Sebelius mentioned the Kansas Speedway and the Rolling Stones. It was a lighthearted moment in a debate in which the Democratic governor and Republican challenger Jim Barnett mainly reminded voters of their positions on issues such as health care, education spending and the economy. The governor and former Kansas insurance commissioner noted she spent the weekend watching NASCAR races in Kansas City, then went to Wichita for the Stones concert.

Topics Homeowners Kansas Aon