Richard Kerr, CEO of Dallas-based MarketScout recently addressed a question many people have asked, “Is the Market Really Turning?” Below are his thoughts.
Is the market really turning?
No one knows for sure, but it is clear property rates are stabilizing. And, we are seeing the return of true account underwriting. Class underwriting is out. Underwriters are now required to exhibit “old line” underwriting skills. The old guys will step up and be recognized while some of the young Turks will suffer from a lack of technical underwriting experience. In the end, this shake up will be good for the industry.
We predict a trend where good accounts will be given preferential coverage terms and reduced premiums. Tough accounts with poor loss experience and misguided management will suffer in restricted coverage terms and higher premiums, ending up in the E&S market.
Sounds like a return to 1995 doesn’t it?
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