• Business and Finance
• Family
• Computers and Internet
• Auto and Trucks
• Education
• Health
• Hobbies
• Home Improvement
• Legal
• Marketing

• Home
• Arthur's Articles Home
• Browse Categories
• Browse Authors
• Submit an Article
• Search for Articles

Home » Family Articles » Property And Casualty Insurance Trends

Property And Casualty Insurance Trends

Recent world events have instilled a sense of fear in anyone who turns on the television or opens a newspaper. People are more aware of their vulnerabilities, and more interested in purchasing insurance. The irony is that the same disasters, disease and acts of war have created a negative trend in the property and casualty insurance industry, to the point where these types of insurance are more expensive and more difficult for consumers to obtain.

The property and casualty insurance industry posted a $7.9 billion net loss in 2001. According to the Insurance Services Office (ISO) and the National Association of Independent Insurers (NAII), this is first time that the industry has ever reported a net loss. Experts predicted a negative 2.7 percent return rate for property and casualty insurance, almost 6.5 percent lower than the return rate of the year 2000.

These losses have caused a number of property and casualty insurance companies to cut back in an effort to economize. One step taken to reduce losses was to avoid adding any new property and casualty insurance policies. The insurers have also purposefully stopped updating or renewing existing property and casualty insurance policies. As a result, the premium price of property and casualty insurance policies has increased.

A number of factors are said to have caused the property and casualty insurance problem, including acts of terrorism, natural disasters, economic turmoil, and even mold.

The headline of one trial lawyer publication, "Mold is Gold", indicated that recent court decisions against insurers had jeopardized profitability of the property and casualty insurance industry. Invasive mold was recognized as the latest household hazard, and property and casualty insurance policyholders were cashing in with lucrative lawsuits. A well-publicized Texas lawsuit resulted in a staggering $32.1 million decision -- extremely profitable for the owner, potentially devastating for the property and casualty insurance industry.

The terrorist attacks of September 11 greatly contributed to the negative impact on the property and casualty insurance industry. It has been reported that property and casualty insurance claims related to the events of September 11 totaled as much as $70 billion. The same event has also caused the decline of the stock market, adding to the insurance industry's downward trend.

This negative impact has also had a detrimental effect on the real estate industry, where property and casualty insurance is essential. Property and casualty insurance coverage is essential when applying for a conventional, government-assisted and commercial mortgage; without it, lending companies will reject the mortgage application. Therefore, the real estate market cannot function properly if this type of insurance is more expensive or less accessible. In real estate, mortgages are paramount in closing the vast majority of sales. Without property and casualty insurance, there won't be any mortgages, and sales in the real estate market will plummet. Moreover, without property and casualty insurance coverage, homeowners would find it difficult or impossible to maintain their mortgage obligations. Lenders would be forced to foreclose on the property, or subject the homeowners to expensive lender forced-place coverage.

No one can contest the devastating personal consequences of natural disasters, acts of terrorism and disease. The insurance and real estate industries are two examples of how these events have had a negative impact on our economy as well.

And here is another random article you might be interested in...

A Beginner's Guide To Bad Credit – What Does Your Credit Rating Say About You?

If you've ever experienced financial problems in the past then the chances are that any mistakes you've made (whether you know you've made them or not!) will be recorded on your credit record. In many cases these mistakes will occur as a result of financial problems you may have experienced â€" but often you can get a bad credit history without really doing anything wrong.

The majority of problems that will give you a bad credit record will happen if you have problems managing your finances. So, if you miss a credit card payment, default on your mortgage, are declared bankrupt or are given a CCJ (county Court Judgement) against you for one reason or another then this will all show up on your credit rating, for example. These kinds of issues will all count as negatives.

But, other issues can give you bad marks on your credit rating. For example, simple factors like your marital status and whether you have children can give you plus or minus points. The fact is that it isn't just what you do with your money that comes up on your credit rating â€" you can have a rating that is less than perfect from a lender's point of view even if you have never had a financial problem before in your life!

But, there is a key issue here â€" no matter where your bad credit rating came from. If you have a less than perfect credit score then you look less attractive to lenders when it comes to taking out loans and other forms of finance. The first thing that the majority of lenders will do when you apply for a loan is to look at your credit rating â€" if they don't like what they see then they could well turn you down flat. And, things could then go from bad to worse as every rejection that you get when you apply for finance also goes on your credit rating!

Luckily, most lenders will take a better view of bad credit ratings now than they may have done in the past. And, if you find that a mainstream lender won't deal with you on this basis, then you need to remember that you do have other options when it comes to taking out loans. There is now a whole sector of the lending industry that solely specialises in working with consumers with bad credit so it may be that these specialists will be better placed to help you out.

One last tip â€" don't let your bad credit rating cause you further financial problems. Some bad credit specialists have muscled into the market with high interest rates and deals that are not as good as they could be. But, there are hundreds of reputable lending sources that you can work with â€" the key is just to find them. This is made much easier nowadays if you online to compare rates and deals. Your key aim here is to get the lowest interest rates and the fairest deals you can â€" after all, you don't want to make a bad situation worse!