 | Hard Market conditions evident!
When Insurer Profitability crashes, pundits call it a "Hard Market". Sharp if not staggering drops in profitability have left many insurers running for the exits. + Full Text
When Insurer Profitability crashes, pundits call it a "Hard Market". Sharp if not staggering drops in profitability have left many insurers running for the exits. For every dollar which insurers receive, some are actually paying out $1:10 or more.
In normal economic times insurers could offset these losses by their investment income ...but obviously that is a problem area too.
Particularly hard hit portfolios are Ontario and Alberta Automobile; but to be certain property losses and weather related losses are also flooding in. In both provinces governments are defining the auto insurance product to a world high standard while insurers defer adequate rate hikes in order to maintain market share.
PROLINK ADVICE: Clients dealing with Brokers who have multiple insurers to choose from are best served in these periods of rate increases and Insurer unpredictability.
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