M&A’s Mark Brannon recently commented in Florida Underwriter on the potential impact of SB  2044. Mark indicated that SB 2044 “provides some changes on how mitigation discounts can be applied” but he expressed doubt as to how many insurance companies will be able to provide an adequate demonstration to support a rate offset at this time.  The full article is available here.

What are your thoughts on SB 2044?  How should Governor Charlie Crist act on the bill? Let us know.

Democrats in the U.S. House of Representatives are discussing legislation that would repeal the anti-trust exemptions currently afforded to health insurance companies.  Ten insurance groups sent a letter to the House last Friday asking the lawmakers to say no to this proposed legislation.  Of particular note to the property and casualty industry is their assertion that medical liability insurance should not be in the discussion about removing the anti-trust exemption from the health insurance industry because medical malpractice insurance is a property and casualty product, not a health insurance product.

Let us know what you think about this proposed legislation and the inclusion of medical liability insurance in it.

In a recent report, Moody’s predicted that year-end results from property & casualty insurers will show improvement in some key rating metrics but there is little evidence of a change in the pricing cycle.  Moody’s analysts do not see a clear catalyst for a turn in the pricing cycle though one catalyst could be the decline in reserve adequacy and the inability to boost earnings with reserve releases.  They note that commercial line pricing may only see a gradual increase, absent a catalyst such as a catastrophe, and that personal line pricing should remain stable.  Their analysis of commercial line pricing echoes the opinions of other industry analysts.

What is your expectation regarding property & casualty pricing for commercial lines and personal lines?  Do you expect increases?  Decreases?  Status quo?  Let us know.