Analyst predicts income falls for US insurers, brokers
The economic crisis will affect the top and bottom lines of commercial insurers, according to a report by US commercial insurance data collector Advisen.
It says while the commercial insurance pricing cycle doesn’t usually follow broader economic cycles, this recession is different.
Executive VP David Bradford says no recession in the US since World War II has “influenced both supply and demand so profoundly”.
“Hard market conditions eventually will provide insurers and brokers some relief, but we see absolute top line income declining through 2009.”
The report’s author, Senior Industry Analyst John Molka, says four years of falling rates is putting stress on both insurers and brokers.
“Under more stable economic conditions the market would be poised for a rebound,” he said. “But economic turbulence is adding a new layer of complexity to the pricing cycle.”
It says while the commercial insurance pricing cycle doesn’t usually follow broader economic cycles, this recession is different.
Executive VP David Bradford says no recession in the US since World War II has “influenced both supply and demand so profoundly”.
“Hard market conditions eventually will provide insurers and brokers some relief, but we see absolute top line income declining through 2009.”
The report’s author, Senior Industry Analyst John Molka, says four years of falling rates is putting stress on both insurers and brokers.
“Under more stable economic conditions the market would be poised for a rebound,” he said. “But economic turbulence is adding a new layer of complexity to the pricing cycle.”