The rising tide by ProQuest

VIEWS: 3 PAGES: 2

More Info
									                                                                                     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
								
To top