PRA issues reserving warning

UK regulator the Prudential Regulation Authority (PRA) has warned
(re)insurers that booked reserves on long-tail lines would need to
be as much as 25 percent higher should historical claims inflation
trends prevail.
In his first speech as executive director of insurance
supervision, David Rule said that when setting reserves insurers
must question whether the recent trend of falling claims inflation
would continue.
Speaking at the General Insurance Research Organisation
conference in Dublin toda