Insurance Market Forecast
This post is written by Jeff Berven of CRS Insurance.
The soft P & C market of the last 6 years is easing; the rates during 2011 have been flat-lining. Billions of dollars in claims cost resulting from the storm disasters across the country and world for 2011 have eroded the profit margins of insurance companies. The pressure to recover catastrophe losses and the new higher cost catastrophe models use to predict disaster losses is putting tremendous pressure on carriers to increase insurance rates in 2012.
The home building industry, particularly tract home builders, multifamily residence builders, and the trade contractors will continue to find a limited number of insurance companies willing to write their liability insurance due in part to the passage of HB1394. Add to this, construction defect claims continue to have a negative effect on the financials of the insurance industry and you will continue to see limited insurance availability.
Another problem coverage is Workers’ Compensation. Rates will continue to show moderate increases in 2012. This is due to an increase in claim costs. Although the frequency of claims are down, the medical and indemnity costs are up significantly.
It has also just been announced that Pinnacol will not continue to seek Privatization until the 2012 legislative session.
This post was written by Jeff Berven of CRS Insurance.