Declarations – West

P/C Insurers’ Strength

“Not a single traditional P/C insurer or reinsurer failed as a result of the financial crisis, nor did a single legitimate claim go unpaid. In contrast, during the financial crisis and its aftermath, more than 400 banks failed.”

—Insurance Information Institute President Robert Hartwig’s comment on the strength of the insurance industry. On July 24, he testified before the U.S. House Financial Services Subcommittee to discuss the Dodd–Frank Wall Street Reform and Consumer Protection Act.

Underwriting Discipline

“The excess market continues to be one of the areas that are most resistant to [increasing underwriting discipline.] There is a misperception held by some that the loss activity occurring in the primary layers won’t climb up the coverage tower over time. A prime example of this would be excess comp.

—W.R. Berkley Corp. President W. Robert Berkley, Jr.’s comment on why there appears to be little change in the excess market.

Protecting Consumers

“Virginia law requires that any time an insurer takes an adverse action based on the credit information, it must tell the consumers the reason for its decision or advise consumers that they have the right to obtain the reason.”

—Virginia Insurance Commissioner Jacqueline Cunningham’s comment on insurers’ use of credit data. In Virginia, carriers may charge higher rates or refuse to issue a new policy based on credit history.

No Coverage for Fracking Exposure

“When information and claims experience are not available to fully understand the scope of a given risk, carriers aren’t able to price protection that would be fair to both the customer and the company.”

—Nationwide on why it won’t cover damage related to hydraulic fracturing, or fracking.

Topics Virginia