Insurance Information

It is becoming apparent that insurers are attempting to adapt their business models to issues relating to climate change. Still additional work is needed on the increase in environmental liabilities. This is according to a report by the Boston-based Ceres investor coalition.

For the property and casualty industry, the ratio of premiums to surplus stood at 0.95, by year-end 2008. Compare this with the average for the ratio of premiums to surplus for the last 50 years of 1.52 with a range from a low of 0.84 at the end of year 1998 to a high of 2.75 at the end of year 1974. In a similar way by the end of year 2008, the ratio of loss and loss adjustment expense reserves to surplus was at 1.22. Compare this with a 50 year average for that ratio of 1.43 during the 50 years ending 2008.