Property-casualty insurer rate increases over the past three years are at last impacting their loss reserves, substantially reducing estimated deficiencies, according to Conning Research & Consulting.
A Conning executive said tougher auditing may be a factor in the improvement.
The industry study, "Property-Casualty Loss Reserves: Strengthening Numbers," reported what Conning called “a significant number of reserve additions” by insurers in 2002 to address both under-reserving and continued development associated with environmental and asbestos claims.
However, the study found that deficiencies still exist in the industry.
"In many ways, 2002 appeared to mark a turning point in reserve adequacy," said Michael Weinstein, research director for Conning Research & Consulting in Hartford, Conn.
