Property And Casualty Insurance Trends
Recent world events have instilled a sense of fear in anyone who turns on the television or opens a newspaper. People are more aware of their vulnerabilities, and more interested in purchasing insurance. The irony is that the same disasters, disease and acts of war have created a negative trend in the property and casualty insurance industry, to the point where these types of insurance are more expensive and more difficult for consumers to obtain.
The property and casualty insurance industry posted a $7.9 billion net loss in 2001. According to the Insurance Services Office (ISO) and the National Association of Independent Insurers (NAII), this is first time that the industry has ever reported a net loss. Experts predicted a negative 2.7 percent return rate for property and casualty insurance, almost 6.5 percent lower than the return rate of the year 2000.
These losses have caused a number of property and casualty insurance companies to cut back in an effort to economize. One step taken to reduce losses was to avoid adding any new property and casualty insurance policies. The insurers have also purposefully stopped updating or renewing existing property and casualty insurance policies. As a result, the premium price of property and casualty insurance policies has increased.
A number of factors are said to have caused the property and casualty insurance problem, including acts of terrorism, natural disasters, economic turmoil, and even mold.
The headline of one trial lawyer publication, "Mold is Gold", indicated that recent court decisions against insurers had jeopardized profitability of the property and casualty insurance industry. Invasive mold was recognized as the latest household hazard, and property and casualty insurance policyholders were cashing in with lucrative lawsuits. A well-publicized Texas lawsuit resulted in a staggering $32.1 million decision -- extremely profitable for the owner, potentially devastating for the property and casualty insurance industry.
The terrorist attacks of September 11 greatly contributed to the negative impact on the property and casualty insurance industry. It has been reported that property and casualty insurance claims related to the events of September 11 totaled as much as $70 billion. The same event has also caused the decline of the stock market, adding to the insurance industry?s downward trend.
This negative impact has also had a detrimental effect on the real estate industry, where property and casualty insurance is essential. Property and casualty insurance coverage is essential when applying for a conventional, government-assisted and commercial mortgage; without it, lending companies will reject the mortgage application. Therefore, the real estate market cannot function properly if this type of insurance is more expensive or less accessible. In real estate, mortgages are paramount in closing the vast majority of sales. Without property and casualty insurance, there won?t be any mortgages, and sales in the real estate market will plummet. Moreover, without property and casualty insurance coverage, homeowners would find it difficult or impossible to maintain their mortgage obligations. Lenders would be forced to foreclose on the property, or subject the homeowners to expensive lender forced-place coverage.
No one can contest the devastating personal consequences of natural disasters, acts of terrorism and disease. The insurance and real estate industries are two examples of how these events have had a negative impact on our economy as well.
Linda Davis writes for several web sites, such as http://yetra.com and http://tocip.com
Related Articles:
Letting Your Property Bear Fruit
Buying a house is a great investment for your future. Most importantly, you have a house that you can call your own. There is no stress as to whether your landlord will renew his contract with you once the end of the year comes around. You simply have to pay a certain property tax every year that is not likely to change thanks to the whims and fancies of a certain person. Moreover, it is lovely to have a house that is witness to all your memories. Rented apartments can house extremely happy families. However, it is not necessary that they will be witness to all your best and worst times. Moreover, there will always be the feeling that you have to move out of this place and into a place of your own.
Relationships: Letting Go of Problem Solving
"We never seem to be able to solve any problems," Kaylee told me in a phone session "Every time we sit down to solve a problem, we end up fighting
Your Website Could be Letting You Down
A professionally presented business website is a powerful and essential marketing tool: it's the first thing prospective customers will look at before they decide to contact you.If the copy on your website is not written to an acceptable standard, it may be losing you customers.
Letting go of Mr. J.
Meet Mr. J., a grade school librarian. Through the years, many students came through the halls of this particular school and they all adored Mr. J. He had a way with children by knowing each student by his/her name and making all of them feel special. It was not unusual to walk past the library and see a group of students huddled around his desk sharing their day with him.
Letting Go and Letting Be
In Corrogue it is frosty.The earth is hard and unyielding.
Letting Go Of Your Clutter
Sometimes we know that we have too much stuff that we don?t really want. Sometimes we find it hard to let go. This is common.
Success by doing what you love and letting others do what they want
The first thing to understand is the four major areas for getting from where you are to where you want to be. Then setting up a team of individuals filling in and playing the roles that they most love to play. Wondering how this can be accomplished? Read on&
Is Letting To Students A Good Property Investment
There are many different markets open to you if you want to get into property investment, some more suitable than others
Depending on the kind of property you buy, you could look to rent to single people, professional couples or maybe even families
Letting Go Makes It Easier
Letting go of your preconceived notions, self-limiting beliefs, and over-analyzing nature can lead to great freedom in your life both spiritually and otherwise. The act of letting go is far easier than most people believe it to be. This is in part due to the fact that most people tend to think rather than act upon this concept. Being intellectually aware and knowledgeable about letting go is not the same as actually doing said task. This was something I myself even after 16+ years of meditation have not always had the easiest time accomplishing. However, recently, this changed for the better.
Letting The Internet Help You Move
Moving can be overwhelming. Not only must you deal with a thousand details on this side of the move - packing, gathering medical and dental records, canceling services, forwarding mail - there are at least as many if not more details on the destination side of the move - getting the kids in school, finding and adjusting to a new job, unpacking, getting services turned on and working right. Turning to the Internet for a little help may be just what you need to keep your head above water.