Envista Forensics

US Insurers Report Bigger Underwriting Loss In 2022

 Wednesday, March 29, 2023

 Business Insurance

The U.S private insurance industry saw a $26.9 billion net underwriting loss in 2022, more than six times the $3.8 billion loss in 2021 and the largest underwriting loss since 2011, according to preliminary estimates from Verisk Analytics Inc. and the American Property Casualty Insurance Association.

The results are consolidated estimates based on annual statements filed with insurance regulators by private property/casualty insurers domiciled in the United States, representing about 94% of business written by U.S. property/casualty insurers, the organizations said in a statement.

Net written premium for the insurers rose to $769.68 billion in 2022, an 8.3% increase from 2021, and net income fell 33.6% to $41.2 billion.

The group’s combined ratio deteriorated to 102.7% in 2022 from 99.6% in 2021.

‘Hurricane Ian and the effects of inflation resulted in major losses for property insurers last year, while accident severity continued to plague personal and commercial auto lines,’ Neil Spector, president of underwriting solutions at Verisk, said in the statement.

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