Reserving for Operating Losses of the Involuntary Markets

Various mechanisms have been devised, frequently by regulatory bodies, to provide insurance capacity when insurers decline to voluntarily write coverage. These mechanisms and their insured populations are often referred to collectively as the involuntary market. This panel will explore issues associated with involuntary markets in the automobile, workers’ compensation, and medical professional liability lines of insurance. Recent trends in loss experience will be identified, significant changes in the market will be noted, and the current and future impact of this market on insurer results will be discussed.