MUTUALS FACE INCREASED COMPETITION
Mutual property/casualty insurers are likely to face increased competition over the next few years due to overall capital buildup in the insurance industry, but they are well positioned to compete, according to a study by Hartford, Conn.-based Conning Research & Consulting.
The Conning Research study, “Property-Casualty Mutuals: Managing Through the Softening Cycle,” identifies the strategic differences between stock and mutual companies in the industry, and analyzes how that may affect the softening cycle.
“Emerging price softening may be made worse if the country goes into recession, and a return to catastrophes and increasing casualty frequency may challenge capital resources of some companies,” says Christiansen. “But there is much that mutuals can do to prepare and respond. Turning more focus toward policyholder retention is the best solution for both the increased competition and the softening price cycle.”
INSURER OFFERS INTERRUPTION COVERAGE
A new offering from New York-based Integro Insurance Brokers provides enhanced business interruption coverage for the world’s technology companies, which have become more vulnerable as manufacturing, testing and assembly are increasingly outsourced to the Pacific Rim, the company says.
With the introduction of Contingent Business Interruption Excess (CBEX), firms can boost coverage to as much as $50 million, mitigating the risks of their concentrated reliance on Far East subcontractors, according to Integro.
“Just as we did post-Katrina, establishing and then offering expanded property coverage in hard-hit coastal states, Integro is partnering with Ironshore, an insurer we sponsored, to provide an innovative solution to a profound challenge,” says Peter Garvey, president of Integro.
Gary Marchitello, Integro’s property practice leader, adds that CBEX helps manage the business disruption risk companies face in their manufacturing migration to the Pacific Rim.
(c) 2008 Insurance Networking News and SourceMedia, Inc. All Rights Reserved.
