As insurance prices fell over the course of almost two decades, so did standards of care in underwriting as insurers scrambled to compete to win business at all costs, insiders say.
“The industry works in cycles,” says Catlin. “Broadly speaking, when you’re in a hard cycle [with prices increasing], contracts are tighter and then the market softens so they loosen up. There’s always a price to pay for loosening up, and it’s often an unintended price.”
Insurers are to blame for the appalling quality of policy wordings, says Bruce Hepburn, chief executive of Mactavish, which advises businesses purchasing insurance. Hospitality