According to early findings from the American Property Casualty Insurance Association (APCIA) and global analytics company Verisk, key financial outcomes for private U.S. property/casualty insurers drastically declined in 2022 compared to a year earlier.
The industry reported a net underwriting loss of $26.9 billion for 2022, more than six times the underwriting loss of $3.8 billion for 2021. The industry experienced its highest underwriting loss since 2011 in 2022. Consolidated estimates based on yearly disclosures submitted by insurers to insurance authorities are used to calculate the preliminary results shown in the table below
According to Robert Gordon, senior vice president for APCIA (American Property Casualty Insurance Association), the insurance business is suffering from rising input prices, natural disasters, legal system abuse and reluctance in some states to adequate rates. "At a time when loss exposures are quickly expanding, insurers' surplus shrank by more than $76 billion as a result of a 14.1% increase in incurred losses and loss adjustment costs. In order to meet their rising cost of capital in 2023, insurers will confront a considerable challenge in closing the rate gap.
“Hurricane Ian and the effects of inflation resulted in major losses for property insurers last year, while accident severity continued to plague personal and commercial auto lines,” said Neil Spector, president of underwriting solutions at Verisk (Verisk Analytics, Inc. is an American data analytics and risk assessment firm). “To remain profitable in these challenging times, many insurers are looking for new ways to reduce expenses, increase efficiencies, and enhance the customer experience. And they’re finding help from an ecosystem of advanced technology and analytics that is growing every day.
Source: https://www.insurancejournal.com/news/national/2023/03/30/714476.htm
Commenti