Good News is Bad News? (From the P&C Files)

Only in the world of insurance would we find the following said strictly matter-of-fact, with no laugh track expected or necessary:

"Lloyd's of London warned yesterday that an absence last year of natural disasters or man-made accidents was putting pressure on firms to reduce premiums in 2008."

Because claims have been so low, profits have been good, which means that competition (which is, of course, a good thing) is heating up. But when that happens, folks who underwrite the risks have to slash prices to make themselves more attractive, which then cuts into profits.

This is one of those times where I'm truly grateful to work in a side of the biz that understands market forces and the value of customer satsifaction and open communication.