Gulf insurance opens door to specialty business

Rough Notes, Jun 1999 by Boone, Elisabeth

In the overall market for management liability, Pryor says, "I see a tremendous amount of capacity and competition." However, he adds, "I've seen some signs of pricing beginning to stabilize. I think the industry is seeing a shortening of the time between when a claim is made and when payment is made. It used to be five years; now it's one year or less-the tail is becoming shorter. Also, reinsurers have begun to experience an uptick in claims. Smaller companies are starting to have issues with reinsurers. The market's not hardening, but there are signs of less competition."

Where does Gulf stand amid all this market turmoil? "From Day One, we've always said that in management liability, we must be consistent. In 11 years, we've nonrenewed only three accounts. Rates are lower today, but we're comfortable with our book, and we're definitely here for the long term."

From standard property/casualty insurer to the specialty division of one of the world's leading financial conglomerates ... that's a huge transition, and one perhaps not every insurer could make smoothly or confidently. For the Gulf Insurance Group, the key to success has proved to be a firm resolve to stick to the basics: identifying target markets, developing the expertise to serve those markets well, and making a commitment to remain a stable force through the inevitable twists and turns of capacity, competition, and pricing.