January 9, 2012

Here are a couple pieces of the puzzle that maybe is being assembled:

1) Commercial Property & Casualty rates rose in December, for the second consecutive month. According to MarketScout, increases averaged 1% to 2%.

January 6, 2012

No, we're not expecting the almost-mythical hard market to arrive in 2012. Maybe there'll be some firming of prices, but a 110% combined ratio and little investment income doesn't seem to slake the thirst of the so-called standard markets for risks they shouldn't be writing.

We're planning a great year. We've been working on some things that will make us more valuable to retail insurance brokers. You will see us roll out some new programs that are exclusive to Pacific Coast E & S, including some Personal-Line products. Stay tuned.

And it's leap year. An extra day to do what we do best.

George Rothert

December 7, 2011

We've been reading lately (here and here) that the insurance market is tightening, that modest price increases are becoming the norm. Or at least pricing has hit bottom. Will this be the self-fulfilling prophecy?

The P & C insurance industry has been shedding jobs. Since the middle of 2008, employment in the industry has decreased 8/3%. In the month of October, 900 jobs were lost. One must wonder if the reduction of jobs is the result of declining premiums and whether there will be an increase in jobs if a hardening market brings higher premiums.

George Rothert

November 10, 2011

As if cash-poor local governments didn't have enough problems, destructive insects are wreaking havoc on trees and municipal budgets. According to the Kiplinger Letter, invasive insects are ravaging vulnerable trees, and local governments are paying the cost to cut down damaged trees. According to this report, the emerald ash borer from Asia, is alone costing the Midwest about $850 million per year. As foreign trade grows, so does the invasion. There are at least 450 known species casing trouble. Researchers and federal regulators are making progress building better safeguards at ports to keep the bugs out and identifying them quickly so they can be quarantined.

George Rothert