S&P Sees Trouble Ahead

Standard & Poor's (S&P) rating service has issued a report indicating that the failure of 35 insurers nationally in 1999 is a trend that will continue in 2000 due to increasing industry competition. S&P cited the recent failures of Harvard Pilgrim HMO and the Superior National Workers Compensation carrier as evidence that insurers are continuing to fail. The main reasons for failures in the Property/Casualty sector are continuing competitive pressures, which have led to inadequate pricing and weakened reserves. The Workers Compensation business was particularly hard-hit in 1999. S&P believ...