The Liability Crisis and the Dynamics of Competitive Insurance Markets

Ralph Albert Winter

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Abstract

From late 1984 to mid-1986, the liability insurance industry was characterized by dramatic changes in the pricing and availability of insurance coverage. Premiums in commercial casualty lines of insurance rose by hundreds of percent for some policies. Limits on coverage in many policies were reduced to a fraction of potential losses and insurers stopped covering some types of risks and entire lines altogether.

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