Wednesday, November 15, 2006
NEW YORK, Nov 14 (Reuters) - Standard & Poor's Corp. unveil a rating system for insurers on Tuesday that will likely force belongings insurers to keep more money in set aside for losses. This could cut the amount of premiums property insurers can write and hurt future profits, analysts presage.
S&P's new "capital adequacy" model for the insurance industry is its first major attempt since 1996 to revise its standards for the entire industry. The rating system will be implemented over the next several months.
Whereas S&P's model affects the whole industry, some companies such as life insurers and large group life companies may promote from the changes.
But property carriers, who insure homes and cars, and victim companies with long-standing disclosure to issues such as medical misconduct, will certainly need more money in preserve for probable losses.
The industry undergo $68 billion in insured losses from hurricanes in 2005 and, since 1990, it has posted endorse losses of $276 billion.
In the awaken of these losses, other rating agencies have also constrict standards, including A.M. Best Co., which concentrate in insurance, and Fitch Ratings, which urbanized a new sculpt in June.
posted by renaa
@ 9:26 PM
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