Advertise
Resources
Member, Beacon International Group, Ltd.
NEW YORK—Standard & Poor's Corp. raised its outlook on share prices in the property/casualty insurance industry to positive from neutral, saying that recent catastrophes will help insurers increase their prices.
“We believe the record level of worldwide catastrophe losses experienced year to date, including an estimated $3 billion from tornadoes in Joplin, Mo., will lead to a firming of rates for many lines of coverage,” Catherine Seifert, insurance analyst at S&P Equity Research Services in New York said in a statement.
S&P's Equity Research Services unit does not have access to the non-public information available to the financial strength rating units of the rating agency.
The insurance market has been soft for several years as insurers competed vigorously for business before and during the economic downturn. But following a string of catastrophe losses over the past several months, including the March 11 earthquake and tsunami in Japan and a string of tornados in the United States, some experts have speculated that insurance rates will at least stop falling and may rise in certain lines.
U.S. property/casualty insurance rates dropped an average of 4% in April compared with the same period in 2010, Dallas-based electronic insurance exchange MarketScout said Thursday.