A recent article on Advisen suggests a gradual and prolonged hard market is coming, due to drained capacity, continuing catastrophic losses, and the inability of carriers to recoup underwriting losses by virtue of their investment portfolio. (See the full report here)
Could we be seeing a return to underwriting and pricing sanity soon?
I’ve had a couple of carriers take some conservative actions lately, and I note two carriers have pulled out of preferred Agents E&O business. I’m hopeful this does portend a firming of the abysmally soft pricing. I’m also hopeful that carriers will not engage in the usual knee-jerk reflex terminations of programs and classes of business that we usually get to see along with the price increases.