NEW YORK—Are carriers involved in the transaction insurance marketplace participating in a race to the bottom? Is this the year the rapid growth levels off?
The “two Craigs,” Schioppo and Warnke , both from Marsh, said they have had a bet each year on whether the incredible pace of the transaction insurance market will slow. Craig Warnke, managing director of the broker’s transactional risk practice, admits he’s never won the bet.
“At some point, you figure the market reaches its natural equilibrium,” Warnke said during Advisen’s Transaction Insurance Insights Conference here on April 20.
Warnke’s logic seems sound enough. This can’t go on forever. But the fact is the market has seen significant growth. In 2010, Marsh placed $387 million in transaction insurance limits. The broker placed slightly more than $6 billion in limits in 2016.
Read more at http://www.advisenltd.com/2017/04/21/avoid-race-bottom-transaction-insurance-players-need-stay-lanes/
Chad Hemenway, To avoid a race to the bottom, transaction insurance players need to ‘stay in their lanes’ (April 21, 2017), available with subscription at Advisen Professional Front Page News.
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