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Article: Redeploying Capital.
- Article from:
- Best's Review
- Article date:
- February 1, 2000
- Author:
CopyrightCOPYRIGHT 2000 A.M. Best Company, 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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While insurers are sitting on piles of capital, new competitors are using their cash to redefine the risk market.
The record accumulation of surplus capital brings into question why insurers have not returned excess capital to investors. Are there substantial opportunities that they are pursuing, or plan to pursue, that require vast amounts of capital?
The question of how effectively insurers are putting their cash to work is critical as even more capital flows into the property/casualty industry from nontraditional competitors. By introducing innovative ways to think about and mitigate broader risks, these new entrants have the potential to reshape the ...