Good news for the Insurance Industry

As we are always out and about speaking to Insurance Companies, MGA’s and Surplus Lines Brokers we have recently been hearing a positive outlook about the Insurance market.   Now it looks like there is some actual numbers to back up what we have heard.  I have included the article below and you can view it here as well.

P&C Insurers Report Slight Underwriting Gain in Q3-Alex Vorro

While it’s not necessarily reason for insurers to throw up their hands and crack open the champagne, a preliminaryreview by SNL Financial of Q3 statutory financial data for U.S. property/casualty insurers found modest improvement in underwriting profitability and additional stabilization through realized and unrealized capital gains.

With data available for nearly 88% of expected P&C filers, the industry (excluding financial and mortgage guarantor companies) is on pace to report a $536.0 million underwriting gain in Q3 2009, an encouraging sign when compared to the $7.7 billion loss the industry experienced during the same period in 2008, SNL says. Losses and expenses totaled $93.7 million, down from $107.2 million at this time last year. The loss ratio, defined as losses and LAE (loss adjustment expense) to net premiums written, fell by nearly 9 percentage points to 71.7%.

“Fortunately for P&C insurers, there was no Hurricane Gustav or Ike this season,” said Jon Wright, director of the insurance group at SNL. “With the economy still weak and premiums written dropping off further, it was very fortunate that catastrophic losses were minimal. The soft market has to continue at this point with an industry seemingly flush with surplus capital.”

The combined ratio for Q3 2009 was 99.1%, and realized capital gains topped $458.8 million, an improvement compared to 107.4% and losses of $6.7 billion, respectively, for Q3 2008. However, overall profitability was tempered by a decline in net premiums earned, down 5.2% year-over-year.


What to look for in an Inspection Company

At RSI, we want to make sure that you get the most out of any inspection company that you use. Granted, we would like you to work with us, but even if you don’t we want to make sure you ask the right questions from any company that you work with and make sure that you get the right answers. We’ve posed a list of questions that you should start out by asking any inspection company that you work with.

• How accurate are the reports? How much detail do they have?

An inaccurate report or incomplete report can cost your company tens of thousands of dollars or more.

• Can they customize your reports?

It’s important that if there is special request you have, that you can get what you need. Make sure that the company you work with has the flexibility to get you the information you need.

• Do they have a complete online web system? Can you order track and retrieve all your work from an easy to use website?

You should be able to order, track and receive the information instantly at your finger tips any time you want it. Having an online system will make you more efficient and save you time and money.

• Can they provide you with national coverage with inspectors that have regional knowledge?

It is important that if you have an out of state inspection that you work with a company that can cover you, yet still have inspectors with knowledge of the region and industry.

• How experienced is their staff?

You want to make sure the company that you work with has a lot of experience in the industry. You want to make sure both the staff and inspectors understand what is needed. They are an extension of your company. They are who the insured interacts with. They must be professional.

• If there are any issues, how quickly do they get resolved?

No system or process is perfect. There is bound to be a time when an error occurs. You want to make sure that the company has a solid track record of making corrections quickly.

• Are they licensed?

In the state of California, inspections companies need to be licensed as a private investigator. If you use a company that is not licensed, your company may held liable.

You need to be comfortable with the inspection company that you use. They are an indirect extension of your company. You need to be sure that they represent you properly and get you all of the information you need, when you need it, and in the format that suits you. If you have any questions please give us a call at 1-800-541-5496 or e-mail us here or at