According to Weiss Ratings Inc., the economic downturn claimed 40 insurance companies in last year – a modest 5% increase over the year before, when 38 insurance companies failed.
Of the 40 failures, 34 were property and casualty insurers – Reliance Group’s insolvency accounting for 12 companies in this group, Weiss reports.
In comparison, in 2001:
- the number of HMO failures declined for the second year, dropping 58%, from 19 in 2000 to 8, and
- bank failures decreased by 43% from 7 to 4 over the same period