All GLG News Analyses Filed Under: Insurance & Risk Management

The characteristics of Nonstandard Auto insurance listed in this article are well known, and one can find information at the Casualty Actuarial Society website www.casact.org by entering a search string such as “nonstandard auto”.   Any business entering this market must understand the effect...

Implications: 1.Core elements consists of the low- income and the immigrant population. 2.A New Standard for the non-conforming risk will cause a Drastic shift in the Risk Profile of the marketplace. 3.There is NO clear definition of the nonstandard insured - A Blue Print for Failure and , additional...

1) Full Disclosure - Mark Mariotti ran a nonstandard auto operation (California admitted MGA with Ohio company underwriting)  in Southern California during the 1970's &  '80s with a direct-marketing model and a non-internet online (yes back then) reservation style quoting system....

Implications: 1.A reported loss of 90% of Market Capitalization implies a threat to the Institutions' credit rating - market positioning may have Financial Impact on future Decision Making relating to the form's capacity to be a Competitor amongst peers. 2.Causation: the subprime - mortgage securities...

No major catastrophes. Reinsurance market is strong. Insurers bolstered by personal Lines market profits. That capacity is being used for competing in the Commercial market. Most of the competition will be in property insurance which has a shorter claims tail.

With the current state of the stock market is this the time to get out of some areas of the insurance industry? Is Buffet's latest sale just another step on a lily pad?

Property/Casualty insurance prices continue to decline primarily for three reasons: (1) continuing profitability, including lack of catastrophes; (2) abundance of supply over demand; and (3) desire to increase market share.  Barring a rash of natural catastrophes or terrorist attacks, this...

If a major bond insurer was to lose its triple-A rating the likely outcome is a redistribution of losses rather than incremental losses. In the longer run the impact could even be positive.

Implications: 1.Debt risk is the , primary, motivating factor.Such risk causes the need for additional capital and elimination of dividends for investors. 2.Rating firm's confirm the risk assessment and lower the institution's standing rate: Affect on the firm - Either higher interest rates or the inability...

The reason Marsh is struggling is because of poor leadership ending up with $850,000,000+ in fines from NY, IL and CT for bid rigging and prohibited contingency fees.  Future profitability & growth for these brokerages is anything but certain and likely to grow very slowly because they are...