Life and Health Insurance Companies

The next direction of the property and casualty insurance business cycle is *most likely*:

Incorrect. There’s a material difference between the historical average of the combined ratio and the current combined ratio for global loss mitigation.

Correct! Since the combined ratio is significantly higher than the historical average, this indicates that the downward cycle in the P&C business is almost over. This should lead to an upward cycle as some P&C entities close or choose to leave that part of the insurance business.

Incorrect. The combined ratio indicates that it has become difficult to cover overhead expenses, so the cycle is already near or at its low point.

flat.

upward.

downward.