Declarations

2011 Exposures

“Exposures will continue the growth we saw in the second half of 2010 as the economy continues its recovery, implying increases in insurance premium volume. Still, the low interest rate climate, which will likely persist throughout 2011, will challenge insurers to price risks in closer relation to their claims potential. Similarly, business bankruptcies might ease off … but are likely to continue at troubling levels, so that the demand for commercial insurance in 2011 will rise from a smaller base.”

—Dr. Steven Weisbart, Insurance Information Institute senior vice president and chief economist on the profitability of the P/C insurance industry in 2011.

An Acceptable Year

“2010 was an acceptable year, a good year. You can’t avoid the fact that in those good numbers you’ve got a release of prior year reserves and returns that are not the kind you want over trend. This year is one where underwriting discipline and managing costs are going to be more important than ever because we can’t allow the results of 2010 to delude us into thinking they are better than the true underlying numbers suggest.”

—Liam McGee, chairman, president and CEO of The Hartford Financial Services Group Inc. speaking at the Property/Casualty Joint Industry Forum, held by the Insurance Information Institute.

Just Compensation

“One of our founding principles is no taking of private property without just compensation.”

—Randy Smith, a lawyer for homeowners who filed suit to stop repairs to the 17th Street Canal in New Orleans. The canal failed catastrophically during Hurricane Katrina and the Army Corps of Engineers plans to begin work soon to strengthen its flood wall and levees. Homeowners with backyards along the canal claim that they own the land where the work will take place and they have not been compensated for damage to their properties. Seven families claim work crews would be trespassing. The suit stems from a dispute over whether backyards along the canal are part of the state’s right of way or private land.AP