Seen at Business Insurance, in an article discussing an average 15% drop in pricing in commercial lines:
“We expect a very competitive market for the balance of 2007 and well into 2008,” said MarketScout’s Chief Executive Officer Richard Kerr in a statement accompanying the results. “There is simply too much capacity chasing premium and what is perceived as incredible opportunities for underwriting profits. The only thing that will turn this market in the next six months is a horrific catastrophe or some type of unknown legislative or legal action, which profoundly impacts the insurance industry.”
It’ll be interesting to see what complaint consumer advocates will make against the industry if they have to give up the “record profits” line.