Insolvencies Increase, Work Comp Leading Line

The number of insolvencies among property/casualty insurance companies remained high in 2002, with 38 companies placed either under regulatory supervision or into liquidation, according to the special report, "Rising Number of P/C Company Impairments Continues Trend," issued this week by A.M. Best Co. This is greater than the pace experienced in 2000 and 2001, with 30 insolvencies in each year. Several years of inadequate pricing, escalating loss costs and the need to strengthen loss reserves fueled declining operating profitability and further weakened balance-sheet strength. This caused ...