Declarations

Keeping Homes Afloat

“PCI applauds Congress for acting to keep the National Flood Insurance Program in place. Allowing the program to expire would have very negative consequences for policyholders and also for the nation’s economy. Most home buyers use federally backed mortgages to purchase property, and such mortgages are prohibited by law for homes in floodplains unless they have flood insurance. Therefore it is crucial to keep this vital program running.”

—David A. Sampson, president and CEO of the Property Casualty Insurers Association of America (PCI), applauding the short-term extension to the National Flood Insurance Program.

General Liability Losses

“We project that the next couple of years will see a moderating in general liability premium reduction, gradually leading to a modest increase by 2010. … In the longer run, the future of the general liability insurance market will play itself out between the cumulative effects of small to moderate losses and the rising prospect of mega-risks.”

—Mark Jablonowski, analyst at Conning Research & Consulting, commenting on his company’s study: “General Liability: Staying Relevant (and Profitable) in the New World of Risk.” The study indicated general liability losses and expenses are expected to increase faster than premium increases in the next couple of years.

Seniors Not Necessarily a Safety Risk

“Not surprisingly, as people age, their skills and faculties, including strength, range of motion, motor skills, sensory acuity and ability to heal, diminish. While this may suggest that older workers would have a negative effect on workplace productivity and safety, statistics prove otherwise.”

—Ken Nogan, Risk Control Consultant at PMA Insurance Group, commenting on a white paper, “Capitalizing on an Aging Workforce.” The paper suggested older workers can be a benefit to the companies that employ them, but when older workers do get injured those injuries tend to be of higher severity. The paper also reports that since 1977, the number of people 65 and older in the workforce has increased more than 100 percent.

A Steady Share

“While the weakening economy dominated headlines in 2008, the property/casualty insurance industry has actually been feeling the impact of relentlessly soft pricing for the past several years as reflected in the 2007 analysis. The independent agency system continues to be the leader in commercial lines, holds a significant share of personal lines, and dominates both lines in some states.”

—Bob Rusbuldt, president and CEO of the Independent Insurance Agents & Brokers of America Inc., commenting on a new study that indicated independent agents and brokers continued to hold their overall market share in the P/C industry even with the reduced premium written.