.customSharing{} .customSharing h3.sharingHeadline{ font-size:1.25rem; } .sharingIconsWrapper{ display: flex; flex-direction: row; flex-wrap: wrap; align-content: center; justify-content: flex-start; align-items: center; gap:.75rem; } .sharingIconsWrapper a.sharingIcon{ text-decoration:none; border-radius:3rem; padding:.5rem; font-size:1rem; background:#ff0000; cursor:pointer; } .sharingIconsWrapper a.sharingIcon i{ text-decoration:none; color: #ffffff }

With Higher Loss Ratios Carriers Face Increasing Pressure to Cut Costs

Mike Spongberg

To navigate the shifting landscape, many carriers are looking to targeted initiatives to cut costs.

Last week, S&P Global Market Intelligence published a report stating that 14 of the 20 largest U.S. auto insurers saw double-digit increases in loss ratios year over year in the second quarter.

Wells Fargo analyst Elyse Greenspan in a research note said higher severity trends are hitting the insurance industry, impacting personal auto companies. While frequency has not returned to 2019 levels for most personal auto players, severity is up when compared to two years ago, she said.

Three major carriers saw their loss ratios weaken to 66%, 70%, and 73%, up from 41%, 44%, and 51% respectively a year ago.

Berkshire Hathaway Inc. in a quarterly filing said GEICO's claims frequencies in the first six months of 2021 were higher for all coverages, including property damage at the 11%-to-12% range, bodily injury at the 13%-to-14% range, personal injury in the 16%-to-17% range and collision in the 21%-to-22% range. As a result, the report indicates that carriers across the industry are implementing targeted initiatives aimed at increasing revenues and cutting costs.

Read the full text of the article here.

Ready to learn more?

Schedule a demo with a knowledgeable team member

Request a Demo