Personal auto is proving a real drag on personal lines, with AM Best reporting that private passenger auto liability and physical damage account for approximately two-thirds of the segment's results. Credit: Nuthawut/Adobe Stock
As a new year approaches, AM Best is maintaining its negative outlook for the U.S. personal lines segment as results for personal auto and home insurance continue to deteriorate and rate adequacy remains elusive.
The rating agency's outlook is driven by rising loss cost severity; higher reinsurance costs and tighter terms; increased losses from secondary perils; higher overall retentions for property lines, which in turn drive higher net losses; and restrictive regulatory environments in some states.
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Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
