Hartford, CT, June 19, 2007 – The U.S. property-casualty industry improved its reserve position substantially in 2006, according to a new study by Conning Research and Consulting, Inc.
�The property-casualty insurance industry reserve position improved substantially in 2006, when compared with our prior analyses. Overall, the industry appears to have more than sufficient reserves, under reasonable assumptions of continuing inflation and claims settlement patterns. Several years of strong premium growth, coupled with moderate loss growth, have enabled the industry to add to loss reserves,� said Stephan Christiansen, director of research at Conning Research & Consulting, Inc.
The Conning Research study, “Property-Casualty Loss Reserves: Strong, But Beginning to Fade?” is based on an extensive analysis of historical data composed of paid losses and reported loss development for the casualty and liability lines.
�Insurers have increased rates, strengthened reserves, and reduced the reserve deficiency that we have been tracking for at least the past seven years. The estimated reserve position for the casualty lines of insurance decreased from a deficiency of -4.3 percent of carried loss reserves at year-end 2004 to an estimated redundancy of 5.3 percent of carried loss reserves at year-end 2006,� said Christiansen. �However, with a closer look at reserves aged more than ten years, we see a need for additional strengthening in some lines of business, particularly in the reserves carried for those older years. This effect is greatest on the long-tailed lines of workers� compensation and other liability�occurrence, but also is seen in private passenger automobile and commercial multiperil.�
“Property-Casualty Loss Reserves: Strong, But Beginning to Fade?” is available for purchase from Conning Research & Consulting, Inc., by calling (888) 707-1177 or by visiting the company�s web site at www.conningresearch.com.
About Conning Research & Consulting, Inc.
Conning provides insurance industry analysis to insurers and industry stakeholders. The Conning name has represented excellence in independent insurance industry research for 50 years. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth insights and analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.