Section 4.41 Current Insurance Market

• Library: Construction Law 2016 Supp

A. (§4.41) Current Insurance Market

The property/casualty insurance market has continued to harden in terms of nearly across-the-board price increases, more stringent underwriting requirements, higher retention levels, and general reduction in capacity since early 2000. In reviewing the financial results of this market for 2001, Gregory Alff, a senior actuary for Willis Risk Solutions with 30 years of commercial lines actuarial experience, in his article “Actuary’s Notebook: How Long Will the Hard Market Last” in RISK MANAGEMENT, January 2003, identified some of the following factors that have led to and continue to impact this existing climate:

Increasing underwriting losses, which are now being fully recognized following several years of inadequate recognition, that have created the following firsts in the insurance industry: its worst one year...