P&C Industry Faces Second Consecutive Year of Underwriting Losses: Report

Personal lines drive industry losses; combined ratio improves from 2022

May 22, 2024 Photo

The property and casualty insurance industry has experienced underwriting losses for the second consecutive year in 2023, primarily driven by personal lines, according to a recent report by Triple-I and Milliman.

The two organizations reported in a members-only webinar, titled, “Insurance Economics and Underwriting Projections: A Forward View,” that the net combined ratio for 2023 was 101.6, an improvement from 2022. Furthermore, the report notes, “Premium growth is expected to further improve underwriting results in 2024, with the 2024 industry net combined ratio forecast at 100.2.”

Numbers by Category

“The 2023 commercial lines net combined ratio was 96.2, 1.4 points worse than the 2022 result,” according to the report.

Meanwhile, for personal lines, the report says, “While still unprofitable, personal lines improved 3.2 points relative to 2022. For 2023, the personal lines expense ratio improved by almost two points over 2022, most dramatically in personal auto. The net written premium growth rate for personal lines surpassed commercial lines by over seven points in 2023.” The workers’ compensation line 2023 net combined ratio was 87.3, “nearly identical to 2022 and the second lowest in over 15 years.”

Dale Porfilio, FCAS, MAAA, chief insurance officer, Triple-I, says in a statement about the report, “The overall picture from prior quarters remains the same with commercial lines performing better than personal, but to a lesser extent…. Continued personal lines premium growth should lead to further convergence in underwriting performance in 2024.”

About The Authors
Angela Sabarese

Angela Sabarese, Associate Editor of CLM. angela.sabarese@theclm.org

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