Turning (Non-Life) Markets: History, Triggers, Catalysts And Impediments

This PowerPoint report, presented by Robert Hartwig, president of the Insurance Information Institute, before the Amsterdam Circle of Chief Economists in the Netherlands identifies four criteria, all of which must be met, for there to be a turn in nonlife insurance markets. These are (1) a sustained period of large underwriting losses; (2) a material decline in surplus capacity; (3) a tight reinsurance market; and (4) renewed underwriting and pricing discipline. Other factors contributing to the underwriting cycle include the investment environment; the tort/casualty environment; and the economy (i.e. supply and demand). Each of the criteria and factors are illustrated with numerous tables and graphs.