The property and liability insurance industry fluctuates between periods of increasing insurance rates and tight underwriting standards, and decreasing insurance rates and loosening underwriting standards. Profitability in the industry follows these cyclical movements. What is this pattern of fluctuations called?

The property and liability insurance industry fluctuates between periods of increasing insurance rates and tight underwriting standards, and decreasing insurance rates and loosening underwriting standards. Profitability in the industry follows these cyclical movements. What is this pattern of fluctuations called?



A) the claims cycle

B) the underwriting cycle

C) the business cycle

D) the accounting cycle



Answer: B) the underwriting cycle

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