Despite the P/C industry‘s best efforts to have rates keep pace with losses, results are deteriorating, according to new study by Conning Research & Consulting, Inc. In fact, Conning estimates that the deficiency has more than doubled from just a year ago, further straining P-C insurers‘ ability to cover the rising cost of claims.
Conning‘s most recent study, "Property-Casualty Reserve Adequacy; Digging Dipper," finds that even though industry reserves were increased by more than 8 percent in 2002, this increase is insufficient to strengthen the reserve position. Price increases, stricter underwriting guidelines, and greater loss controls have not yet constrained poor underwriting results.
