What's Behind The Jump In 2000 Losses

Monday, November 27th, 2000 Auto Liability Property

Incurred losses increased by 9.7 percent in the first half of 2000 from the prior year. As shown in the chart on this page, this is almost double the rate of increase for full-year 1999. Indeed, if this rate of increase were to continue in the second half, the rise in losses in 2000 would exceed every year of the decade of the 1990s except for 1992, when Hurricane Andrew struck. Furthermore, this major hike in losses is occurring in a year of relatively light catastrophes. Perhaps the overall message from the data is a call for extra vigilance on the claims side. The claims function has to be managed aggressively and continuously. Claims are like sponges—when you concentrate and press down hard in one area, some other area expands.

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http://www.nationalunderwriter.com/archives/Pc_archive/2000/P11-27/P200048whats.asp

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