S&P Global Market Intelligence tracks all things insurance. In a new report, S&P predicts that by 2024 insurers, and the insurance industry, will return to underwriting profitability. The combined ratio is predicted to fall below the break even number of 100% sometime next year.
So far, the combined ratio in 2023 is 100.8%. That’s up from 102.6% in 2022.
S&P principal research analyst, Tim Zawacki said the industry will also see double-digit growth in direct written premiums for the rest of 2023. The report calls it “corrective actions employed by carriers in the private auto as well as the residential and commercial property insurance businesses translate into robust premium growth.”
Auto insurance in the private sector had a combined ratio of 112.2% in 2022. That is light-years higher than the previous 25-year high of 111.8% in 2000.
Source link: Business Insurance — https://bit.ly/3rzUVoE