Controller's Report

Some controllers question the precision of surveys that show premiums for property and casualty (P&C) coverage in decline. Reasons: These CR readers recognize that their P&C insurers are under pressure to generate more cash from premiums, since their investment income has dropped significantly in the stock market decline. Furthermore, some of these controllers say they have (in response to insurer pressure) increased their deductibles at their most recent renewals, thereby trading higher potential out-of-pocket costs for lower prices. Upshot: Reports showing a continuing soft market for P&C premiums may actually understate potential changes in the total cost of coverage, which includes self-insured losses.