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Article: Sink or swim? Insurance companies diversify to survive in tight market.(Special Section: Business Insurance)
- Article from:
- Crain's Detroit Business
- Article date:
- September 28, 1998
- Author:
CopyrightCOPYRIGHT 1998 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The Detroit area market for business insurance remains brutally competitive, and that means the tough times for local insurance agencies and good times for insurance buyers will continue.
Even the stock market's recent gyrations won't force insurers to raise rates in the short term.
Insurance companies might find it tougher to raise new capital in the months ahead because public stock offerings in general are tougher in a skittish market. However, most insurance companies keep the lion's share of investment portfolios in bonds, not stocks. And bond portfolios have risen in value as interest rates have fallen, giving insurance companies even more investment ...