Rating analysts at Standard & Poor's are concerned about loss reserving activities of commercial insurers, and insurance executives are eyeing the same troubling actions, speakers at a recent conference said.
Reacting to those fears, investment analysts and actuaries also gave their take on the property and casualty loss reserving picture last month in Brooklyn, N.Y., during the Standard & Poor's Insurance 2009 Conference, concluding that while overall reserves are adequate now, the situation bears watching.
During the opening session of the conference, S&P Managing Director Thomas Upton said his firm is particularly concerned about the fact insurers are taking down (or releasing) loss reserves they carry on their books for prior accident years too quickly. The releases are material for some long-tailed casualty lines, such as workers' compensation, Mr. Upton said, referring to an S&P analysis contained in a report the rating agency published in January.
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