Underwriting Cycle

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Underwriting Cycle

The business cycle in the insurance sector. In the underwriting cycle, insurers compete with each other for clients, resulting in falling premiums and low underwriting standards. Insurers therefore write more policies than they can reasonably risk, which results in higher underwriting standards and premiums. Eventually, insurers write too few premiums to sustain and the cycle begins again.
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The ability to have a more accurate sense of the ultimate cost of risk will allow insurers to price with greater discrimination, which should encourage company management to rein in underwriting risks before losses get out of control, leading to what the report calls "shallow underwriting cycles.
Synopsis The report provides in depth market analysis, information and insights into underwriting industry trends for non-life insurance globally, including: -- Comprehensive assessment of non-life underwriting market dynamics -- Analysis of the effect of changes in regulations on underwriting -- Analysis of the underwriting cycles -- Detailed analysis of the technological trends impacting underwriting -- Detailed analysis of the effect of natural and man-made disasters on underwriting
Since 1950, there have been six or seven such underwriting cycles, lasting between 6 and 7 years on average in the United States (see Venezian, 1985; Cummins and Outreville, 1987).
Swift says the full impact on workers' comp will likely take two full underwriting cycles to flesh out.
We could go to shorter underwriting cycles and do renewals every three to six months, but the market won't accept that.
We find that when there are high levels of capacity, underwriting profits follow a damped oscillatory AR(1) process and there are no underwriting cycles.
Taking a break from tossing around theories, equations and statistics during the recent meeting of the American Risk and Insurance Association (ARIA) in Orlando, FL, insurance academics met in plenary sessions to focus on underwriting cycles and insurer solvency.
With the consistent emergence of positive underwriting earnings, TPRe has demonstrated its ability to manage its portfolio under different underwriting cycles.
html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Insurance Synopsis The report provides in depth market analysis, information and insights into underwriting industry trends for non-life insurance globally, including: -- Comprehensive assessment of non-life underwriting market dynamics -- Analysis of the effect of changes in regulations on underwriting -- Analysis of the underwriting cycles -- Detailed analysis of the technological trends impacting underwriting -- Detailed analysis of the effect of natural and man-made disasters on underwriting Summary The insurance underwriting industry has undergone a paradigm shift over the last decade due to the introduction of new technology, which has revolutionized processes and business practice.
Prospective insurance entrants from the West should be interested in the timing and causes of underwriting cycles that are specific to Asia before they invest in the Asian insurance markets.
HEMIC's operating strategy is focused on bottom line profitability that enables the company to adjust throughout underwriting cycles by being capable of handling large revenue fluctuations due to changing market conditions.
In 2004 much of the industry appeared to be moving toward higher-return investments as the underwriting cycles softened, bond yields increased, and equity market values grew," said Scott Daniels, managing director at Conning Research & Consulting.