Best Study Finds Insurers' Insolvency Causes
NU Online News Service, May 25, 9:26 a.m. EDT?A new study examining insolvency by U.S. property-casualty insurers finds that small, commercial-lines focused, public insurers have the highest risk of collapse, with deficient loss reserves and poor pricing being the leading cause, according to A.M. Best.[@@]
The Oldwick, N.J.-based rating firm said it examined 871 financially impaired p-c insurers dating back 34 years and identified the main causes of impairment for 562 companies. Among those, the leading cause of impairment, at 37.2 percent, was deficient loss reserves/inadequate pricing.
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