Severity continues to increase, but frequency growth has leveled.
The U.S. private passenger auto segment has experienced a turnaround after weakened performance in 2015-2016, as rate actions and underwriting initiatives resulted in a 3.8-point year-over-year improvement in the sector’s combined ratio in 2017, as well as a 4.7-point loss ratio reduction through third-quarter 2018, according to a new AM Best report.
The Best’s Special Report, Personal Auto Insurers Regain Traction as Combined Ratio Improves, states that a leveling of loss frequency helped to drive the stronger performance in 2017-2018, with market leaders in this line of business reporting lower
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