Declarations

2011 Exposures

“Exposures will continue the growth we saw in the second half of 2010 as the economy continues its recovery, implying increases in insurance premium volume. Still, the low interest rate climate, which will likely persist throughout 2011, will challenge insurers to price risks in closer relation to their claims potential. Similarly, business bankruptcies might ease off … but are likely to continue at troubling levels, so that the demand for commercial insurance in 2011 will rise from a smaller base …”

—Dr. Steven Weisbart, Insurance Information Institute senior vice president and chief economist on the profitability of the P/C insurance industry in 2011.

An Acceptable Year

“2010 was an acceptable year, a good year. You can’t avoid the fact that in those good numbers you’ve got a release of prior year reserves and returns that are not the kind you want over trend. This year is one where underwriting discipline and managing costs are going to be more important than ever because we can’t allow the results of 2010 to delude us into thinking they are better than the true underlying numbers suggest.”

—Liam McGee, chairman, president and CEO of The Hartford Financial Services Group Inc. speaking at the Property/Casualty Joint Industry Forum, held by the Insurance Information Institute.

Workers’ Comp Reforms

“We all witnessed the hostile business climate prior to the 2004 reforms and know that if the California economy is to rebound from this great recession, we must not return to those days. While there is a real need to examine the permanent disability schedule, reinstituting the schedule to pre-2004 reform levels would result in a significant increase in the Workers Compensation Cost Claims Benchmark. This increase would likely be reflected in real world rates paid by employers and could slow a recovery by California’s economy.”

—Former California Insurance Commissioner Steve Poizner asking Gov. Jerry Brown to preserve the workers’ compensation insurance reforms that have reduced the Workers’ Compensation Cost Claims Benchmark by more than 60 percent since its high in 2003.