Analyst at Fitch Ratings has published a report which concludes that the P&C industry even with significant economic challenges due to the global pandemic has remained stable.
Last year, the US P&C industry struggled with many operating challenges from COVID-19, which lead to huge changes in the workstation and economic environment as well as a great volume of unique claims related to the pandemic.
However, regardless of these challenges, the industry reported a constitutional underwriting profit for the year in 2020, with a 99% combined ratio, and net income steadily around $60 billion each year from 2018-2020.
Industry policyholders surfeit dropped suddenly in Q1 2020, from the equity market mayhem in the early phases of the global pandemic.
Nevertheless, the report also explained that the market recovered later in the year and operating earnings materialized, P&C insurers ended the year with a sturdier capital position as PHS expanded by over 5% year-on-year to the latest record levels.
The market surveys point out that the pricing continues to rise at a level unseen since 2003, the former true commercial lines hard market.
The detrimental profit experience in several property and liability segments joined with current pandemic-related uncertainty promotes further rate rises through 2021. James Austen Managing Director said, “The industry underwriting performance is expected to increase this year, which is due to severe premium rate increases in commercial lines pricing, assuming catastrophe-related losses towards past norms.”