Atlas Magazine November 2004

After the storm comes the calm

After this summer's black series of hurricanes and the downward revision of Converium's rate, it is now the commercial practices of the large American brokers that has recently shaken the insurance sector.

The investigation conducted by New York's state general prosecutor has touched on numerous other companies scattered around the United States territory, and which are likely to stand trial for their methods of management.

Given the effects of globalization, the judicial and financial storm that has just hit hard in the heart of the American system shaking the New York stock market, will undoubtedly send shockwaves to other countries.

No sooner had the insurance industry started to see the light than it was confronted with these recent unfavorable events that are likely to hamper the sector's endeavor to achieve stabilization.

Nevertheless, and as contracts renewal is looming ahead, reinsurers gathering in Baden Baden recently, remain quite confident. The mood that had already prevailed over the Monte Carlo meeting is now confirmed. With the exception of certain guarantees such as the unlimited motor liability, numerous tariff cuts are to be reported.

The hazards accumulated during recent months have taken their toll on reinsurers' outcome without reversing the year 2004 positive trend, though. The profits made during the first semester shall enable reinsurers to envision the future with more serenity.

Although this ease remains moderate, it provides many reinsurers with a puff.

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