Best’s Special Report: US Property/Casualty Industry Suffered Second-Straight Year of $20 Billion-Plus Underwriting Losses in 2023
2024年7月2日 - 10:15PM
ビジネスワイヤ(英語)
Unprofitable results in the U.S. private passenger auto and
homeowners/farmowners market insurance segments led to a
second-straight year of net underwriting losses in the
property/casualty (P/C) industry eclipsing $20 billion, according
to a new AM Best report.
The 2023 financial results on each individual line of P/C
business, along with corresponding analysis, are detailed in a new
Best’s Special Report, titled, “2023 P/C Snapshot: Personal Auto
and Homeowners Results Continue to Dampen P/C Underwriting
Performance,” and the data is derived from the aggregation of
companies’ statutory statements that was completed as of June 17,
2024.
According to the report, the $21.6 billion net underwriting loss
in 2023 followed a $25.8 billion underwriting loss in the previous
year, predominantly driven by a $32.8 billion underwriting loss in
the personal lines segment. The private passenger auto line of
business reported an underwriting loss of nearly $17 billion in
2023, approximately half the loss reported in 2022. However, net
underwriting losses in the homeowners/farmowners line more than
doubled over the previous year to $16.0 billion.
“With only one hurricane to make landfall in the United States
in 2023, most catastrophe losses were from secondary perils,” said
David Blades, associate director, Industry Research and Analytics,
AM Best. “Personal lines insurers have been aggressively pursuing
rate and pricing increases for a few renewal cycles now to reflect
calculated rate needs more accurately, and to spark a reversal of
recent underwriting losses. However, regulatory constraints,
inflationary pressures and more frequent and severe weather-related
events continue to dampen results.”
The commercial lines segment generated positive results in 2023
from up-pricing and more-effective risk selection, achieving a net
underwriting profit of more than $10 billion. The workers’
compensation line of business remained profitable with continued
reserve releases on older years, including claims over 10 years
old. Underwriting results for commercial property and medical
professional liability insured improved as well, although those
lines remained unprofitable.
“The emergence of new types of liability is a challenge for
commercial casualty insurers, particularly in light of evolving
legal and societal attitudes toward dietary supplements and
nutraceuticals; for example, the advent of new chemical and
materials technologies, genetic engineering research, and other
trends,” said Christopher Graham, senior industry analyst, Industry
Research and Analytics, AM Best.
To access the full copy of this special report, please visit
http://www3.ambest.com/bestweek/purchase.asp?record_code=344091.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
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Christopher Graham Senior Industry Analyst,
Industry Research and Analytics +1 908 882 1807
christopher.graham@ambest.com
David Blades Associate Director, Industry
Research and Analytics +1 908 882 1659
david.blades@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com