TITLE

PUBLISHER'S PREROGATIVE

AUTHOR(S)
Epssien, Rita
PUB. DATE
April 1987
SOURCE
Risk Management (00355593);Apr87, Vol. 34 Issue 4, p2
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
This article presents information on the state of the risk management industry in the U.S., as of April 1987. While the Insurance Information Institute points to a recovery in 1986 by property/casualty insurers, whose operating income was estimated at $4.5 billion, which is an increase from a 1985 loss of $5.6 billion, buyers of commercial liability insurance are allegedly not finding underwriters waiting in line for their risks. Instead, they are investigating moving out of the commercial sector and turning to alternative risk financing mechanisms, such as captives and risk retention groups. Brokers and insurers have allegedly become involved in arranging and capitalizing various pooling-type arrangements. Since enabling legislation was passed in 1984, such captives have been established by 17 major European industrial groups. Capitalization is allegedly high in comparison with other captive domiciles, which is over $1 million. As noted by Peter Lardner, chief executive officer at Bituminous Insurance Company, insurance prices must reflect the cost pressures exerted by society. The result of such pressures allegedly led to the liability crisis and the attendant scrutiny of the insurance industry by regulators and legislators.
ACCESSION #
14398811

 

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