insurance premiums by the end of 2008, say specialists.
Steve Wrigglesworth, chairman of the Rossborough Group, predicts that the current ‘soft insurance cycle’ is due to come to an end. ‘This type of phenomenon is quite common in the insurance industry, with premiums fluctuating between hard and soft cycles,’ he said.
He explained that after the terrorism at the New York World Trade Centre – the largest ever insured loss – new insurance and reinsurance companies were formed to take advantage of the increase in premiums and ‘excellent profits’.
Consequently there were then too many insurance companies chasing too little business, with the result that premiums fell.