As claims return to a more normal frequency post-lockdown, carriers are raising prices to offset both the frequency of loss and an increase in loss severity. (Credit: anekoho/Adobe Stock)
While 2020 saw a pandemic-related dip in driving activity, U.S. personal auto insurance underwriting results declined sharply in 2021, especially during the fourth quarter, says a recent report from Fitch Ratings.
As claims return to a more normal frequency post-lockdown, carriers are raising prices to offset both the frequency of loss and an increase in loss severity. However, according to Fitch, the magnitude of rate increases might be met with pushback from regulatory constraints and competitive forces, as well as issues surrounding inflation and the supply chain, which can boost incurred losses.
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Brittney Meredith-Miller
Brittney Meredith-Miller is assistant editor of PropertyCasualty360.com. She can be reached at [email protected].
