The Insurance Information Institute (Triple-I) released last week a summary of its quarterly report, Insurance Economics, and Underwriting Objections: A Forward View, the substance of which was presented at a virtual webinar for Triple-I’s members on May 15.
Some of the report’s findings highlighted by Triple-I’s summary are:
- The property/casualty insurance industry faced underwriting losses in 2022, with a net combined ratio of 102.4%. This was due to divergent performances between personal lines (with a higher combined ratio of 109.9%) and commercial lines (with a lower ratio of 94.8%). The difference between the two was the largest in 15 years.
- Chief Economist at Triple-I, Michel Léonard, highlighted macroeconomic factors, such as inflation and rising interest rates, that are impacting the industry. He also noted that the property/casualty industry’s growth is constrained by current monetary policy.
- The P&C industry underwriting projections were discussed by Dale Porfilio, the Chief Insurance Officer of Triple-I. He noted that commercial lines performed better than personal lines, with gains expected to continue through at least 2025. In contrast, personal auto had a net combined ratio of 112.2% in 2022, the worst in decades.
- For homeowners, the net combined ratio was an unprofitable 104.6, driven by significant underwriting losses, notably from Hurricane Ian, the second-costliest insured loss after Hurricane Katrina.
- The industry saw growth and gains in certain areas. Cyber insurance direct written premiums grew by 50% in 2022, and the workers’ compensation line demonstrated consistent underwriting gains, returning to near pre-pandemic levels in 2022.
The full Triple-I press release can be accessed by clicking on this title:
“Inflation, Catastrophes Contribute to 2022 Underwriting Loss for P&C Industry, New Triple-I/Milliman Report Shows.”
About Insurance Information Institute (Triple-I)
Founded in 1960, the Triple-I provides objective, fact-based information about insurance while being a trusted source of unique, data-driven insights that inform and empower consumers. We want people to have the information they need to make educated decisions, manage risk, and appreciate the essential value of insurance. We have more than 60 insurance company members, including nine of the 10 largest property/casualty insurance writers in the United States. Our focus is to create and to disseminate information; we neither lobby on behalf of the insurance industry nor do we sell insurance.
Milliman is among the world’s largest actuarial and related products and services providers. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. For further information, visit Milliman