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Advisen Brief: Is a Hard Market in the Cards for 2009?

Posted on 19 May 09

According to a recently released Advisen Briefing, underwriting losses and sharply lower insurance industry investment income signal that the end of the commercial property & casualty soft market is near its end. Rate levels probably will bottom out in 2009, but absent severe catastrophe losses, a return to the hard market conditions of 2001-2003 is unlikely.

“The Insurance Market in 2009: A Market Poised for a Change” examines the forces at work on commercial insurance premiums, claims and investment income in 2009. Looking at the impact of both macroeconomic conditions and factors specific to individual lines of business, this Advisen Briefing provides risk managers, brokers and underwriters valuable insight into a commercial insurance marketplace buffeted by volatile and unprecedented forces.

Topics addressed in the Briefing include:

1. Pricing trends by line of business, 2001-2008, plus the 2009 forecast.

2. How the credit crisis and the ensuing recession will impact both the supply of and demand for insurance capacity in 2009.

3. Near-record catastrophe losses in 2008 and their influence on insurance capacity and pricing.

4. Increasing loss costs in many commercial lines as a result of the credit crunch and recession.

5. The potential impact of a swine flu pandemic.

The Insurance Market in 2009: A Market Poised for a Change draws from Advisen's proprietary loss and insurance program databases to chart market trends and to demonstrate how economic forces are reshaping the commercial insurance competitive landscape. The Briefing provides a framework for planning and budgeting in a difficult and unsettled market, and is a resource for brokers, risk managers and others who need to explain insurance market conditions to customers and to senior management within their own companies.

Advisen’s complete report and analysis is available at

About Advisen

Advisen Ltd. provides insight into underwriting, marketing and purchasing commercial insurance. Advisen's web-based workstation incorporates real-time analytics and research on over 1.5 million companies and 70 industries. Advisen currently serves nearly 350 leading commercial insurers, insurance brokers, risk management departments of major corporations, and other related organizations. Proprietary offerings of the Advisen service include Benchmarking, Custom Templates for Company Work-ups, Company and Industry Research, Loss Analysis, Management Portfolio Analysis and Policy Comparisons.

Headquartered in New York City, Advisen was established in 1999 by a team of seasoned insurance and technology professionals. Today, Advisen is backed and funded by some of the commercial insurance industry's most recognized and respected executives.