The number of insurers put under state supervision fell to its lowest point in a decade, according to research by Standard and Poor’s. The research found that the number of insolvencies has declined steadily among insurance companies in recent years, and property and casualty insurers are making up a smaller percentage of those failures. There were 19 insolvencies in 2004 across all lines, 16 in 2005, and 11 in 2006. The lowest point was just 10 last year. Insolvencies among p-c companies, which Standard and Poor’s noted “historically make up the bulk of the total count,” made up a lower percentage in 2007 (40 percent) than the 10-year average of 57 percent. The only similarity shared by failed companies in 2005 was that three of the failed P/C companies were workers' compensation insurers based in Georgia.

S&P Notes Fewer Insolvencies in 2007 (National Underwriter 3/28/08)

Meanwhile, U.S. insurance industry payrolls gained 3,900 positions from February to March, halting a two-month slide and running counter to bad news for the broader economy, according to seasonally adjusted data released by the U.S. Bureau of Labor Statistics the morning of April 4.