History
The insurance cycle is a phenomenon that been recognised since at least the 1920s. Since then it has been considered an insurance 'fact of life'. Most commentators believe that underwriting cycles are inevitable, primarily "because the uncertainty inherent in matching insurance prices to losses creates an environment in which the motivations, ambitions, and fears of a complex cast of characters can play out." Lloyd's counters that this has become “a self-fulfilling prophecy”.
More recently, insurers have attempted to model the cycle and base their policy pricing and risk exposure accordingly.
Read more about this topic: Insurance Cycle
Famous quotes containing the word history:
“All history is a record of the power of minorities, and of minorities of one.”
—Ralph Waldo Emerson (1803–1882)
“... in America ... children are instructed in the virtues of the system they live under, as though history had achieved a happy ending in American civics.”
—Mary McCarthy (1912–1989)
“Man watches his history on the screen with apathy and an occasional passing flicker of horror or indignation.”
—Conor Cruise O’Brien (b. 1917)