It directly results in what are known as underwriting cycles
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
The underwriting cycles
for specialty insurance products are currently in a difficult market phase, resulting in higher underwriting profits for insurers.
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 find that when there are high levels of capacity, underwriting profits follow a damped oscillatory AR(1) process and there are no underwriting cycles
The study, which reviewed underwriting cycles
from 1926, found that insurance cycles were more volatile than general business cycles.
A Study of Why Underwriting Cycles
Occur, Insurance Management Services, Conning and Company.
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.
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.
However, the fluctuations of hard and soft underwriting cycles
may be a thing of the past as traditional reinsurance providers now compete with non-traditional sources of portfolio risk transfer, such as insurance-linked securities and "alternative" investors such as pension, hedge or sovereign funds.