Retail chains, real estate investment trusts and other businesses that need specialized insurance may be in for a particularly rough ride, a wholesale broker said. "Because of the distress of the financial markets, a major natural catastrophe will have an increased impact on the recapitalization capability of the properly insurance marketplace," said David Pagoumian, chief executive officer of Napco.
Finance Insurance Madoff case may cause premiums to increase Insurance costs may not always go up in lock- step formation, according to Mark Englert, of Kinloch Holdings. “In mid-2008, we saw underwriting profits beginning to deteriorate as a result of reduced investment income and rising costs,” he said. “General liability insurance has seen flat to modest increases, but it’s tougher and more expensive to get liability coverage for directors and officers — especially at publicly held companies — as a result of Wall Street’s meltdown and the fallout from the Bernie Madoff financial scandal.” The rising tide Errors and omissions coverage, or mal- practice insurance for accountants, invest- ment brokers and other financial or insurance professionals, has been stable, but Englert said the Madoff scandal may drive up premiums if Business owners struggle to balance significant investor lawsuits are filed against Steven J. Dundas risks with growing cost of insurance investment advisers, certified public account- ants and other finance-related parties. “We’ll probably see increases in many premiums in the second half of 2009,” he said. — Martin C. Daks David Pagoumian, Napco chief executive officer, says a major disaster could change the property casualty marketplace instantaneously and cause rates to rise. BY MARTIN C. DAKS casualty marketplace instantaneously, bring- “Our 2009 property and casualty rates are MARTIN ABO was shocked by his insurance State worker premiums ing in a hard market with increased rate hikes,” only slightly ahead of last year’s rates,” said company’s annual renewal papers. “We got hammered with a 34 percent poised to take short drop In fact, a company that simply has expo- sure to flood, wind and fire damages — typi- Scheininger, also a vice chairman with the New Jersey Chamber of Commerce. “Our product jump in 2009 health care costs,” said Ab
Pages to are hidden for
"The rising tide"Please download to view full document