b'\'-1fthe easuring Insurance Marketplace Buried in the piles of dataanindicationofthe qualityof.ing inrd pro Price cutt many standavided by the "Information Age" webusiness it writes and may givecommercialsectorsisbeing operate ins atoinformation on the adequacy offueledbycompetitionamong it\' challengetry suranceosebases have and forecast where the in thecompany\'s premiumrates.insurers wh capital industryheaded. In an earnestOperating efficiency and effective soaredfrom theU.S. isfavorable attempt toll their story, insur n are measuredthe expensefin markets.A.M.Best te essbyancial ance companies often overwhelmratio." (Property-Liability expects thatextent of damInsur theage pub shearance,rithelic with thevolumeanceAccountingandFin caused by heavy p ce cutting in of numbers theyarewilling toCormick L.andE.today\'s market w l become more BreslinTerrieilprovide. If we had to rely on aTroxel)evident in the fourthquarterof Mark S. Nausersingle statistic to give us an indica T mostrecentpublished1 andduring 1999."(B the998estion of where the insurance marketresults for thethirdq rterofWeek, Insu ce New and Analyua ranis headed, we should look at the1998 show an industry combinedsis,7, 1998) December changes in theindustry\'s com ratio of 104.2 which ispointsWhatthe results suggest? 3.2dose bined ratio.worse than the same period forIn spite of in underwriting creased losses, the industry as a w le is hoIfhad toonmaking money oninvestment werelythe side of the equa n. Last years . a single statistic toExpressed as aa combined ratio=tioformula,third quarter d in the stock marLosses Incurred+Underwriting expensesip Ugive us an indicationket combined with the hurricane ofthe insur Premiums EamedPremiums Earaedseason should causeinsurance where companies to firm their pricing. ance market is head "Finally,large commerseveral "T combined ratio summa 1997. This drop was primarily dueciallinesinsurers havepulled ed, we should look athe rizes inone statistic the overallto the effects of catastrophe lossesback from the extr competiemely the changes in theunderwriting performance of thesuch as H icane Georges withtive middlet account; h urr marke owinsurerduringanaccountingan estimated cost ofbillion.ever, there is still plenty of naive industry\'s combined$2.5 period. It is usefulcomparingUnderwritingresultsinthecapitalfill their void." (Ibid) forto ratio.results amongvariouslines ofcommercial lines segment,Mark Nauser is a whichspecialist in insurance,amongcom ,accountsa ly%construction insurance, and panies forpproximate 41mancomparingind the and forthe result of aof theustry\'s premium volume,ager ofMRCA Insurance and singleinsureroverseveralslippedthreepointssincelastBonds Program.For more inforaccounting periods. Its compo year, to ained ratio of 106 .mation about MRCAInsurance comb .1nent parts a also significant. A.Premiumgrowthoverallinand Bonds, cal/ 888/512-2461. re company\'slossratio- overallcommercial lines was nonexistent, and by line of insurance-givesreflecting fierce price competition 15'