Monday, August 22, 2011

Kentucky Proposal for Allocation of Surplus Line Tax

Here is a NAPSLO link to the Kentucky proposal for allocating taxes.  NAPSLO, AAMGA, CIAB, CIWA and a number of other industry organizations have come out in support of this proposal.  SLIMPACT has signaled its intention to utilize this approach.

Kentucky Surplus Line Tax Allocation Proposal

Friday, August 19, 2011

One of the key measures of financial health in the insurance industry is cash flow. Whenever the industry goes into negative cash flow it is either in or is going into a tight market. Here are two graphics that present the annual cash flow for the U.S. Property & Casualty Insurance Industry for the last seven years.
The first graphic presents cash flow separately for Operations, Investments and Financing. Interesting to note that cash flow from Operations has been deteriorating over this time period and that Investments have not produced a positive cash during these seven years.
The second graphic presents the net cash flow position of the industry for the same period of time and note that the industry has had negative cash flow for three of the last four years. Will be most interesting to see what the cash flow position of the industry will be for the first six months of 2011 which will be presented here when available.

Catastrophes, Premiums, and the Cycle

In this interview with insurance Journal’s Charlie Boyle, Jerry Sullivan, head of the Sullivan Group, speaks out on some insurance industry essentials concerning catastrophes, premiums and the Cycle.

Friday, August 5, 2011

How Natural Catastrophes Impact the Reinsurance Industry

In this interview with Insurance Journal’s Charles Boyle, Jerry Sullivan, head of the Sullivan Group, explains how and why natural disasters have an impact on the (re)insurance industry, that goes beyond individual catastrophes as major losses, which have continued to increase, affect premiums and capital flows.

Wednesday, August 3, 2011

U.S. Thunderstorm Losses

Industry Observations

The spate of thunderstorms in the mid-West and South in April and May were unprecedented and the results are beginning to show in insurance company 2nd quarter earnings statements.
See the graphic below.

Insurance Industry Observations

Industry Observations -- U.S. Property & Casualty Commercial Rates
Based on the most recent quarterly report from the Council of Insurance Agents & Brokers, U.S. Commercial P & C insurance rates decreased a mere 0.1% in 2nd quarter 2011, the best showing since the 1st quarter of 2004. Is the market turning? See the graph below.

How New NRRA Regulations and California’s AB315 Will Change the Surplus Lines Industry

Jerry Sullivan, the head of the Sullivan Group, gives his views, largely positive, on how the Dodd-Frank NRRA regulations will require changes in the way the surplus lines industry operates, in this interview with Insurance Journal’s Charles Boyle.


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