In today's Advisen Front Page News we ran a story on the topic about Lloyd's managing agent Ascot Underwriting who announced they were decreasing their "premium income capacity by 28% to GBP450m". See the story here.
In citing how the weak U.S. dollar and the soft market of decreasing prices for commercial lines insurance coverage combined for a "double whammy", Ascot's business development manager Michael Bullock provided a noteworthy comment:
You might well find you lose out on good accounts because you can't chase them
down quite to the extent the market might do.
We haven't seen new capacity in the past month or so, we're seeing existing providers announcing cuts like Ascot - it's just a matter of time before some claims come in and change the supply & demand equation and they are likely to happen in a big way in the area of management and professional lines coverage for financial institutions (D&O, E&O/PI).
Where that ripples in terms of increased pricing remains to be seen. Overall, supply is still disproportionately high as related to demand.
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