SFRI Stays relatively flat

The November SFRI dropped from 0.86 to 0.85. News of capacity reductions and higher reinsurance rates in 2009 have the markets predicting harder times. However, demand for insuance has dropped considerably when compared to 2006 and 2007.  Construction of commercial buildings has nearly slowed to a halt.  Businesses are willing to retain more risk in an environment where it becomes more important to save cash.