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ISO Chief Says Hard Market Coming to a Close

The hard market is coming to a close and insurers now must not sow the seeds of their own destruction by abandoning sound underwriting and...
November 18, 2003

The hard market is coming to a close and insurers now must not sow the seeds of their own destruction by abandoning sound underwriting and pricing. That's the assessment of Frank J. Coyne, Chairman, President and CEO of Insurance Services Office (ISO). Speaking at a conference in Anaheim, California, Coyne said ISO's analysis of rate changes on renewal for commercial policies shows "rate increases versus year-ago levels peaked at 12.9 percent in July 2002 and have been on a downward slide ever since." Despite the industry's history, Coyne said insurers can achieve sustained profitability through sound risk assessment, underwriting and cost-based pricing -- but "not slavish devotion to growth and nanve reliance on investment gains from fickle financial markets."

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