Conning Forecasts Rise in Premium Rates Across All P/C Lines; Consumers Can Expect to Pay More for Auto and Homeowners Insurance.Business Editors HARTFORD, Conn.--(BUSINESS WIRE)--April 26, 2001 Conning believes that consumers can expect an increase in auto insurance premiums next year, reversing a trend in declining auto insurance rates that began in 1995. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a recent Conning & Company study, personal automobile rates are increasing 4%-8%, but recent filings may result in increases of 16% or higher in some areas, especially for non-standard automobile coverages. Homeowner insurance premiums also are expected to increase by 6.9% in 2002. Despite the rise in premiums across all property-casualty lines, competition, escalating losses, increased expenses and a slowing economy will continue to challenge insurers' ability to achieve profitability. According to the study, "Property-Casualty Forecast and Analysis," inflation in medical services costs rose faster than the overall consumer-price-index (CPI (1) (Characters Per Inch) The measurement of the density of characters per inch on tape or paper. A printer's CPI button switches character pitch. (2) (Counts Per I ) over the past couple of years, pushing losses upwards in virtually all casualty lines. The change in the CPI increased from 1.6% in 1998 to 3.4% in 2000. However, over the same period, the change in the CPI for hospital and related medical services rose from 3.1% to 6.2%, and increased a full point in January 2001 alone. Other industry-wide pressures on the property-casualty sector include a hardening hardening, in metallurgy, treatment of metals to increase their resistance to penetration. A metal is harder when it has small grains, which result when the metal is cooled rapidly. 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. market and increasing jury settlements in liability lines. The Conning study reports on all property/casualty lines which include: personal auto, homeowners/farmowners, commercial auto, workers compensation, commercial multiperil, general liability, medical malpractice Improper, unskilled, or negligent treatment of a patient by a physician, dentist, nurse, pharmacist, or other health care professional. , fire and allied lines, and inland marine. For personal auto insurance, Conning suggests that the push to sell policies online may have contributed to an increase in loss ratios through poor classification of risk exposures. The Internet and the intense desire to land online sales has made it easier for consumers to provide inaccurate key rating characteristics in order to secure lower and, consequently, inadequately priced insurance. Auto physical damage insurance premiums should continue to rise due to consumers' preference for trucks and sport utility vehicles This page lists sports utility vehicles currently in production (as of April 2007), as well as past models. The list includes crossover SUVs, Mini SUVs, Compact SUVs and other similar vehicles. . Also, the cost of repairing physical damages has soared, in part, due to the increase in the use of original equipment manufacturers rather than after-market parts. "Insurers are facing a great deal of uncertainty," said Clint Clint is the diminutive word for the given name Clinton and may refer to: People:
When a person begins a civil lawsuit, the person enters into a process called litigation. can be brought under control, insurers will have a difficult time increasing premiums enough to overcome skyrocketing losses." In addition to higher repair costs, homeowner premiums will have to increase in order to offset the rising reinsurance costs associated with catastrophes. Despite a relatively quiet 2000 in insured catastrophic losses, reinsurers are requiring higher premiums to make up for inadequately priced catastrophe losses both inside and outside of the U.S. Also, many home insurers will need to raise their coverage limits, and therefore premiums, for those policyholders who have made significant home-improvements which have increased the value of their homes. These increases are necessary to correct shrinking insurance-to-value ratios. For all property-casualty lines combined, Conning projects a marginal improvement in the combined ratios for 2001 and 2002. Commercial lines are more likely to see greater improvement sooner than are personal lines. The Conning study, "Property-Casualty Forecast and Analysis" is available from Conning & Company for $575 by calling toll free (888) 707-1177 or (860) 520-1245. A complete listing of all Conning Strategic Studies can also be found by visiting the company's website at www.conning.com. About Conning & Company Conning Corporation, through its subsidiaries, provides asset management services to insurance companies and institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. , manages private equity funds investing in financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. companies, and conducts in-depth research on the financial services industry. Conning & Company (member NASD/SIPC) is located at CityPlace II, 185 Asylum asylum (əsī`ləm), extension of hospitality and protection to a fugitive and the place where such protection is offered. The use of temples and churches for this purpose in ancient and medieval times was known as sanctuary. Street, Hartford, CT 06103. |
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