Higher combined Ratio expected

In comparison with final yr, 68 percentage stated they anticipate the combined ratio to be higher in 2014. The combined ratio stepped forward by means of 5.8 percent factors to 96.6 percent inside the first nine months of 2013, from a hundred.nine percentage within the first nine months of 2012.

“blended ratios have to be lower in today’s depressed funding surroundings to generate chance appropriate ROEs,” added Weisbart. “lower catastrophes helped pull up ROEs in 2013,” he stated.

One way to lower costs is by means of consolidation; seventy five percent of respondents said they anticipate an growth in consolidation among insurers and reinsurers in 2014.

in the place of torts, eighty percent of respondents stated they anticipate tort tendencies to stay the equal in 2014; 15 percent stated it might go to pot and most effective 5 percentage stated it would improve.

on the investment side, 83 percentage said they count on every other “up” yr in the fairness markets in 2014 (For the enterprise as a whole, equities constitute handiest about 15 to 20 percentage of invested property. about 70 percentage of invested assets are in bonds.)

enterprise leaders had been also requested whether or not they expect hobby costs to rise, fall or continue to be flat in 2014. eighty percent stated they anticipate interest quotes to upward push, whilst 20 percent stated they anticipate hobby quotes to stay flat.