Best's Review: Catastrophes Trigger Upheaval in Reinsurance Market.OLDWICK, N.J. -- Reinsurers studying 2006 renewals have seen a "tale of two markets" unfolding, influenced by buyers' levels of U.S. catastrophe exposure. Lines of business directly affected by hurricanes Katrina, Rita and Wilma experienced significant changes in pricing and conditions, while other lines remained relatively flat. The March issue of Best's Review calls on experts from major brokerages to explain the dichotomy and predict any more far-reaching effects of the losses from the storms. One observation shared by commentators is the overall financial health of the industry going into the storm season and the large amounts of capital that flowed into the industry afterward, both of which tend to stave off a hard market. As one said, "Many primary insurers have not been inclined to accept rate increases across the board for reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. protection." Others argued that if the market isn't willing to pay, reinsurers should reject the business. The March issue also examines the competition that has heated up among commercial insurance brokers in the fallout from investigations launched by New York state Attorney General The New York State Attorney General is the chief legal officer of the State of New York. The office has been in existence in some form since 1626, under the Dutch colonial government of New York. Eliot Spitzer Eliot Laurence Spitzer (born June 10 1959 ) is an American lawyer, politician and the current Governor of New York. Spitzer was elected governor in the November 2006 election. . Some brokers are gaining market share and some are reporting key new hires. Among those reporting gains are Hub International Hub International Limited is an insurance brokerage based in Chicago, Illinois. The company has 200+ offices across the United States and Canada. The company offers three types of commercial products and services: property and casualty products, employee benefits and risk Ltd. of Chicago, USI Holdings Corp. of Briarcliff Manor, New York Briarcliff Manor is a village in Westchester County in the state of New York. It is shared between the towns of Mount Pleasant and Ossining, and lies entirely within the ZIP code of 10510. , NY; Hilb Rogal & Hobbs of Richmond, VA, and Brown & Brown of Daytona Beach Daytona Beach (dātō`nə), city (1990 pop. 61,921), Volusia co., NE Fla., on the Atlantic coast and Halifax River (a lagoon); inc. 1876. Center of a rapidly urbanizing area, in a region settled by Spanish Franciscans in the 17th cent. , FL. Best's Review is published by A.M. Best Co. for insurance professionals, including home office executives, agents, brokers and others who are affiliated with the industry, including bankers, lawyers and educators. Other highlights of the March issue include: --A newly updated list of captive domiciles, regulators and the number of active captives for 2006. --How smartphones, BlackBerries and other wireless technologies are helping agents and adjusters be more efficient and meet the demand for real-time service. --A comprehensive look at Genworth Financial Genworth Financial is an international financial services organization that offers a portfolio of primarily consumer-focused products through its various companies, including annuities, combination products, investment services, life insurance, long term care insurance, medicare , including trends the company wants to take advantage of and the future of its commitment to the long-term-care market. To read these articles and more, subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; Best's Review by visiting our Web site at www.bestreview.com/subscribe, calling the A.M. Best customer service department at (908) 439-2200, ext. 5742, or e-mailing your request to customer_service@ambest.com. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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