U.S. Insurance Market Report 2012: Surety
Published: 03-Feb- 2012 | Comments: 0
Highlights from the surety section of the U.S. Insurance Market Report 2012 include:
- The surety line is set to once again be highly profitable for 2011, reporting strong profits on historically low direct loss ratios of less than 20 percent.
- Surety capacity was increasing entering 2012.
- New underwriting approaches have emerged, with additional capacity from new market entrants and increased limits from existing sureties.
- In 2012, surety underwriters anticipate diminishing profitability due to a significant increase in surety loss frequency and severity, particularly due to contractor defaults.