A vital component of any insurer’s financial strength is its surplus. Unlike many products where the cost is known at the outset, the cost of an insurance policy is based on an estimate of what will happen in the future. How often claims will be made and how much will be spent in defense of those claims which are made years later are estimated at the time the policy is sold, based in large part on past history. However, new tort theories, changes in the legislative law, and inflation, including medical inflation, all combine to create some uncertainty as to the cost of providing this protection. Surplus is there to respond when those estimates prove to be different than anticipated.

In 2005, Princeton Insurance continued to build its safety net to help ensure that it will remain a long-term, reliable partner to the New Jersey healthcare community.

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