Commercial lines carriers have bolstered their positions after robust earnings in recent years, said the rating agency
A.M. Best Co. has completed its assessment of the U.S. commercial market and continues to view the outlook as stable for 2008 despite the ongoing soft period in the cycle.
Commercial lines carriers have bolstered their positions after robust earnings in recent years by investing in price monitoring tools, predictive modeling, distribution channels and claims systems, said the rating agency. Additionally, the segment has embraced enterprise risk management, and the extension and permanency of the federal terrorism backstop have removed uncertainty regarding this exposure.
“The veterans of the industry have had plenty of experience operating during soft market conditions, which appear to have become the norm rather than a bump in the cycle.
According to A.M. Best: ‘While profits likely will deteriorate in the coming years, the commercial lines segment generally has positioned itself to meet the challenges of changing market conditions throughout the cycle.’
‘The veterans of the industry have had plenty of experience operating during soft market conditions, which appear to have become the norm rather than a bump in the cycle.’
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