Insurers risk depleted loss reserves, study

The combination of recent net releases and continuing adverse development are close to running reserves dry, Conning says

While the US property/casualty industry still appears to have strong reserves, overall its position began to deteriorate in 2007, according to a new study. The study, by Hartford, Connecticut, based Conning Research and Consulting, also suggests that p/c insurers may soon face the need for reserve strengthening once again.