潘金莲传媒映画

潘金莲传媒映画 rating agency AM Best today said it has shifted its outlook of the U.S. personal auto insurance segment to stable from negative thanks to improving loss ratios of the top 20 carriers this year.

Underwriting results have improved significantly, AM Best said, thanks to insurers’ push to increase rates to match trends in loss cost severity.

“Actions taken by insurers on a state-by-state basis to address price inadequacy in their individual portfolios produced higher premium amounts and helped to bring the aggregate net loss and loss-adjustment expense ratio down in 2023 despite continued increases in incurred losses,” said Helen Andersen, industry analyst, AM Best. “The higher premiums also helped lower the line’s underwriting expense ratio to its lowest point in a decade.”

Through the first half of 2024, direct premiums written for the personal auto segment grew 13.5% compared to the same period last year, and the segment’s first-half 2024 direct incurred loss ratio for auto liability was 71.1 compared to 75.6 for H1 2023. The loss ratio for auto physical damage improved 16 points to 63.2 in 2024.

AM Best noted a big factor the “more accommodating regulatory landscape.” Addressing need for rate quickly in the face of inflationary trends can be challenging while waiting on rate approvals. Though state regulators continue to diligently review rate requests, they have “generally allowed carriers to accelerate the frequency and degree of rate filings.”

Factoring in surplus gains primarily from strong net investment income, AM Best said capital lost in prior years has been replenished. And the segment’s continued use of technology in claims, underwriting and distribution has enabled personal auto insurers to recover from an overall net underwriting loss of more than $33 billion in 2022 to a loss of about $17 billion in 2023. The rating agency said it expects insurers to continue their focus on claims costs and effective underwriting.

Topics Trends USA Auto Personal Auto AM Best