Epssien, Rita
April 1987
Risk Management (00355593);Apr87, Vol. 34 Issue 4, p2
Trade Publication
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.


Related Articles

  • A Captive World. Molnar, Bruce // Risk Management (00355593);Aug2008, Vol. 55 Issue 8, p20 

    The author suggests standards by which a company can assess whether a captive, or privately held, insurance company is an appropriate business venture for it to pursue. He states that overall risk must be assessed, and recommends starting by examining the property and casualty insurance policies...

  • Captivating Engagement. Panko, Ron // Best's Review;Aug2011, Vol. 112 Issue 4, p22 

    The article reports on the condition of the captive industry in the U.S. It notes that the economic trend centers on the move of reinsurers in vying for the business of captive insurers. It cites that the property/casualty market has made the business in captives more attractive. It mentions...

  • Hidden Dangers. Spencer, Scott // Best's Review;Nov2010, Vol. 111 Issue 7, p76 

    The article presents the author's insight on loss/risk management in property/casualty insurance in the U.S. He notes that the hidden dangers in this type of insurance can be categorized into three such as water intrusion, electrical problems, and infestation. He suggests homeowners to ensure...

  • P&C Rates Fall 4%, But Moderate In '09. Hays, Daniel // National Underwriter / P&C;1/11/2010, Vol. 114 Issue 2, p8 

    The article reports on the decreased rate index for property and casualty insurance by four percent at the end of 2009 in the U.S. According to Dallas-based MarketScout the rate increases that was anticipated in 2009 did not materialise, however, the year started with a composite rate reductions...

  • Timeline of developments in risk management in 2003. Coccia, Regis // Business Insurance;1/5/2004, Vol. 38 Issue 1, p13 

    The article focuses on developments that have taken place in risk management in 2003. In January, the federal terrorism backstop appeared to be calming an excited market as property insurance and reinsurance rates begin to level off for risk managers and insurers renewing their accounts. But...

  • A Really Small Whooppee! Banham, Russ // Treasury & Risk Management;Apr2004, Vol. 14 Issue 4, p30 

    Reports that in the property insurance and casualty insurance markets in the United States, things are better for risk managers. Three full years of solid premium increases that are giving insurance companies the confidence to stabilize premiums; Creation of several Bermuda-based insurance...

  • Addressing Enterprise Risk with Captive Management.  // New Jersey Banker;Fall2015, p15 

    The article discusses the increase of captive insurance companies formed by banks in the U.S., which customize property and casualty insurance for related entities. Topics include the advantages of captive insurance companies for banks, the small business incentive approved by the Congress for...

  • LTC facilities form RRG in Montana. Geisel, Jerry // Business Insurance;9/1/2003, Vol. 37 Issue 35, p3 

    A group of long-term care facilities in Ohio and Pennsylvania have formed a risk retention group in Montana to cover their professional liability risks. Guardian Risk Retention Group Inc. will write primary coverage of $500,000 per occurrence/$1.5 million annual aggregate for the Pennsylvania...

  • NEW PUBLICATIONS.  // Risk Management (00355593);Jun91, Vol. 38 Issue 6, p103 

    This article presents news briefs on various publications about insurance as of June 1991. The Captive Insurance Manual is a two-volume set that discusses how to conduct a feasibility study, reinsurance of captives, the advantages and disadvantages of forming a risk retention group, taxes and...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics