P/C Trends Gain Momentum After US Attacks
Wednesday, January 16th, 2002 Liability PropertyAccording to A.M. Best Co., the unprecedented events of Sept. 11 have forever changed the way the insurance industry defines risk as both property and liability lines have been exposed to catastrophic risks that cannot be priced using traditional actuarial methods. The affordability and availability of reinsurance have been severely impaired, and most reinsurers are unwilling to cover terrorism risks. Primary insurers are limited in their ability to change pricing and coverage terms and equity markets have become directly correlated with insurance losses. Efforts to create an industry-wide solution to the new threat of terrorism foreshadow an acceleration of commercial lines deregulation, financial services convergence and the integration of insurance with capital markets.
