"We doubted the traditional
underwriting cycle for a while there," he said.
The operating performance assessment reflects Lloyd's long-term record of strong technical performance over the
underwriting cycle as demonstrated by the 10-year (2009-2018) average combined ratio and return on equity of 96.6% and 7.1%, respectively.
We believe the growth of the alternative capital sector has altered reinsurance market dynamics, making capacity shortages less likely and the
underwriting cycle flatter.
Specialised insurance consultancy services company providing the insurance industry with innovative "IT as a service" products and solutions for the
underwriting cycle.
Also, the familiar
underwriting cycle has decoupled materially across long-tail casualty lines, with profitability, growth and reserve development moving in widely different directions by line and segment, Guy Carpenter analysts add.
The insurance industry's robust capital position is delaying a rum in the
underwriting cycle, Ira H.
Best perhaps said it best: "The need to manage through the continuing downward period in the
underwriting cycle will be particularly challenging for companies that have failed to adopt the advanced analytics and enhanced data that enable their competitors to more effectively select and price business and manage claims." The insurers who are willing to take calculated innovation risks will be the ones to survive and thrive in a changing market landscape.
The
underwriting cycle is caused by interest rates and other investment opportunities in financial markets (Kang, 2007).
The insurance market
underwriting cycle is turning unfavorable in many United States commercial market segments, including directors and officers (D&O) liability insurance, New York City-based Fitch Ratings says.
This article reinvestigates the presence and the causes of the
underwriting cycle in the French property-liability insurance industry as displayed by the combined ratio for the 1963-2008 period.
It noted that the recent hardening phase of the market
underwriting cycle "has peaked as abundant underwriting capacity and heightened competition are promoting a shift toward flat-to-declining insurance premium rate changes." Fitch said the commercial lines segment was under greater pressure as prices leveled in most segments and are declining in property lines.