Catastrophes Pushed Homeowners Insurers’ Combined Ratio Above 107 in 2017


After a four-year, 100-plus combination for homeowners in the US, the segment saw its combined rate drop to 107.1 in 2017 as a countless disaster-consequence to an AM. Best report.

The New Best Market Sector Report titled “Homeowners Participating in the 2017 Catastrophe”, stating that the combined ratio of 2017 is above the average of 106.9 over 25 years. The results between 2013 and 2016 benefited from a good disaster activity, appropriate reinsurance pricing, conditions and conditions, and improvements in written analysis analysis.

Despite countless failures in 2017, the vast majority of US homeowners insisted on losses due to healthy capitalization levels, according to analysts.

The positive reinsurance environment continued to be an even worse year for primary host insurance companies in 2017. Most of the shares of these companies were lost. The loss and loss adjustment loss (LAE) ratio for the 2017 accident-year was the third highest in the last 20 years, while the net loss & LAE was 79.3 percent, the sixth highest.

“US personal line insurance companies have been put under pressure to increase the profitability of their home books, to balance worsening outcomes and increase competition in the personal car segment, and homeowners continue to invest and use technology to improve their insurance and pricing tools.” He said he was the best.

The report says forecasting modeling allows for more complex and accurate risk classification, segmentation and pricing, and risk pricing has become a standard for the segment. This more elaborate pricing has increased rate competitiveness and enabled insurance companies and insurance companies to buy reinsurance more efficiently and efficiently.

“The availability of third-party data has allowed more companies to implement risk pricing and has been increasingly used by companies, although enforcement costs may be prohibitive due to a large number of statistically significant rating variables. Raporda is likely to face the risk of losing market share for those companies embracing these technology initiatives. “

Although the year 2017 is a clear contradiction of the number of major catastrophes, ongoing insurance discipline, pricing complexity and ongoing risk management initiatives have critical prospects for future profitability of this segment. The best said

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