Conning: Industry reserves ‘sufficient with a modest degree of safety’

Overall, the industry appears to continue to have sufficient reserves [as of 12/2010], with a modest degree of safety, under reasonable assumptions of claims settlement patterns. However, older years continue to develop adversely; in some lines, this adverse development has expanded again. More significantly, some adverse development in the most recent calendar year is providing a hint that beneficial trends may be turning.

Details, culled from the company’s press release:

  • Private passenger auto liability: Redundancy expanding
  • Homeowners: Reserves ‘about even’ but AY LR is deteriorating
  • Workers Comp: ‘Modestly deficient’
  • CMP: ‘Mild deficiency’
  • Other liability: ‘Some redundancy’ in occurrence, ’emerging deficiency’ in claims-made
  • Commercial auto liability: ‘Reserve strength sustains’
  • Medmal: ‘Expanding picture of redundancy’
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