Ratings analysts at A.M. Best said improved underwriting performance in the private passenger auto line of business, lower—albeit still elevated— catastrophe experience and favorable investment returns have convinced them to maintaining a stable market segment outlook for the personal lines segment of the U.S. property/casualty insurance industry in 2019.
An Best’s Market Segment Report, titled iyor Market Segment View: US Personal Lines la, states in 2018 that the performance of the personal line segment has improved and as a result policyholders have reached the highest level of all time, competition is concentrated in the automobile and host segments. with less significant consolidation.
Although significant activities in the last few years and relatively low cost cost trends have significantly improved the private passenger car segment, the proposed tariffs for cars and auto parts, as well as legalization of cannabis, may adversely affect the segment. says the future years of the report.
Although disaster losses were much less than those experienced in 2017, the loss activity in 2018 increased in the second half. Still, A.M. Increased rates, increased pricing segmentation and favorable reinsurance pricing have reduced the harmful effects on carriers.
Moreover, although the combination of high interest rates and declining credit risk in the medium term created positive trends in stock markets, A.M. The best analysts point out that inflation may cause a deterioration in reserve adequacy.
Analysts see that the rate increases are continuing, but the level of these increases will likely decrease in the near term.
Best of all, believes that the segment should continue to focus on pricing segmentation, product development, risk management and technology and innovation as a whole, and that climate change has become more urgent, especially when demographic and customer behavior change. Analysts said companies are not using their will or resources to be left behind in an increasingly competitive market.
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