Twenty-five years later the industry has made little progress. There are few businesses in which the suppliers deliberately and persistently refuse to meet demands, but insurance is one of them. Arguably insurance is more important to the economic system now than ever before, but it is becoming increasingly unprocurable. In every insurance transaction, the insurer, as the counterparty, is making a promise to pay in the event of a loss. The ability to pay is dependent on the insurer's financial security.
Buyers continue to have difficulty in evaluating the true financial security of their insurers.
And perhaps more importantly, buyers have difficulty in evaluating the 'business security' or long term appetite for a specific class of business. For many buyers of risk financing products, there is latent risk retention capacity. This has resulted in deductibles and retentions being lower than necessary and being out of synch with the organization's overall risk posture. There is continued restructuring of risk financing. The management of risk is made easier by the ability to measure the trade-offs of higher and lower retentions.