Georges will have an impact in four states, with companies which write property in Puerto Rico and the Virgin Islands experiencing the largest losses. Insurers, both foreign and domestic, are actively looking for new programs that make good business sense. New products in the weather niche are expanding to address not only event cancellation and prize guarantees but corporations' bottom-line dollars. If products cannot be shipped in a certain time frame due to weather-related delays, insurance programs can address financial loss. Many creative scenarios can be employed to benefit commercial clients.
Pricing is very competitive as more carriers enter the market.
Excess liability limits with U.S. carriers will vary with the class of business. Some are possibly overly aggressive in establishing rates, but that can change very quickly. Property rates, except in coastal areas, are running as soft as general liability. Results of weather-related claims, available late in 1998, may affect that picture. Although Y2K loss experience won't be apparent for some time, the next 12 months are critical in minimizing potential catastrophes.