PUBLISHED ON: April 1, 2016
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The insurance buying public has long been plagued by the failure of insurance companies, big and small, to mange their affairs prudently or even to disclose their true financial condition.
Insurance insolvencies tend to come in waves, following periods of economic recession or exensive fits of poor underwriting. The latest peak for the property/casualty insurance industry was 2011, when financial impairment frequency spiked to 1.11, well above the industry's historic average of 0.82. While insolvencies have since leveled off, policyholders are still coping with the post-recession fallout.