Much like we've observed in the Homeowners' market, Personal Auto in general has been seeing steady rate increases. However, while Homeowners is expected to achieve its third consecutive year of underwriting profits in 2015, Personal Auto has stubbornly remained at a combined ratio of just over 100 during that time.
Combined ratios in Personal Auto for publicly held insurers are slightly higher in 2015 versus the prior year, Fitch Ratings notes in its "2016 Outlook: U.S. Property/Casualty Insurance." For the industry in aggregate, the ratings agency adds, "Personal Auto statutory results were mired at a modest underwriting loss from 2010 to 2014 and are unlikely to materially change in 2016."
"Stronger underwriters like Progressive consistently hit their 96 combined ratio target, but the industry as a whole is not making money in Auto," Jim Auden, Fitch's managing director, tells National Underwriter Property & Casualty. While insurers are getting rate, Auden explains, that increase ends up offset by rising claims.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
