A Guide to Wrecking Balls, PropertyCasualty360

By Louie H. Castoria, Esq.
(June 1, 2012)

Surprisingly, claims frequency does not necessarily make a person a wrecking ball. Sometimes a person is just in the wrong place at the wrong time. Some professionals enjoy years of spotless records, then have a year of claims. It’s hard to think of them as wrecking balls, although their claims frequency looks high for a while.

Frequency can be caused by outside influences unrelated to being a wrecking ball. Catastrophic losses—earthquakes, hurricanes, floods—generate spreading, concentric circles of claims that first hit the life and property insurers, then members of the brokerage community who…