Why the “flight to high quality” is an insult to the insurance coverage trade
For underwriters, this “flight to high quality” has been underway for the previous few years, with the aim of mitigating poor loss ratios by re-pricing enterprise (elevating charges), bettering danger choice and capability allocation, and tightening up protection phrases and circumstances. On the similar time, insurers have additionally been shoring up their funding methods, as yields have been battered by the sustained low rate of interest surroundings.
Corrective actions from the underwriting group are to be anticipated every now and then, given the considerably cyclical nature of the insurance coverage market and the pure fluctuations within the economic system. On