Insurance too cheap

| 18/01/2010

(Reuters): The rates being charged by USinsurers have fallen too low to buffer carriers against major losses, say analysts, compounded by weak investment returns, leaving executives the tough task of deciding when to raise prices.  "We all thought the turn (toward higher pricing) would come quicker. We’ve been charging too little over the last couple of years and living off old-year reserves," said Len Goldberg, chief executive of Cayman Islands-based reinsurer Greenlight Capital Re Ltd (GLRE.O).  "The economics of the current business show insurers need more price," added Goldberg. "The $64,000 question is, when will that happen?"

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