"The best-performing auto and homeowners' insurers have invested significant resources into technology to improve their underwriting and pricing tools. Those carriers that are slow to adapt to the challenges ahead or don't have the means, expertise or technological capabilities to keep pace with the evolving market trends will likely face pressure," AM Best Senior Director Richard Attanasio said. (Credit: Shutterstock)
Growing loss costs severity, rate adequacy challenges, increasing reinsurance costs and deterioration of personal auto results have pushed AM Best to revise its outlook for the U.S. personal lines insurance sector from stable to negative.
The rating agency was holding a stable outlook for the sector despite a difficult 2021 in anticipation that personal auto insurers would see better underwriting results this year. However, inflationary pressures have led to deteriorating loss ratios and growing loss costs in the auto sector.
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Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
