Search
 

The Financial Meltdown: 5 Years Later

With the worst of the financial meltdown in the rearview mirror, agents and brokers talk about what happened, what the landscape looks like now, and how they're faring in the new normal.

By Julie Knudson | Updated on October 31, 2012
In 2008, a series of bank and financial company failures, resulting from a subprime real estate lending collapse, launched a global financial crisis from which the world is still recovering. In the U.S., Fannie Mae and Freddie Mac were taken over by the government; Lehman Bros. declared bankruptcy; Bank of America purchased Merrill Lynch, and American International Group (AIG) was saved by an $85 billion capital injection by the federal government. By Sept. 17, 2008, more public corporations had filed for bankruptcy in the U.S. than in all of 2007.

As the housing market fizzled and employment challenges mounted, many agents saw declines in both their commercial and personal books of business. Helping clients weather the economic storm was often priority No. 1.

Related: Read “JPMorgan’s “Sloppy” Move Brings Back Bad Memories” by Laura Toops.

Kevin T. Desmond, president of Desmond Insurance in Bellevue, Ky., said his agency worked closely with its personal lines clients to make insurance more affordable. “We relied heavily on increasing deductibles and running credit scores over again,” Desmond said. The agency, which writes $10 million in annual premiums, also moved clients to package discounts and even changed carriers if it reduced costs.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.