Fitch Ratings says premium increases and moderating claims severity benefiting auto insurance companies.
The improving, more favorable mid-year 2024 results of U.S. personal auto insurers are likely to continue through the end of 2024 and into 2025, Fitch Ratings says. Several rounds of material price increases and a moderation of claims severity trends has vastly improved the segment’s profit footing.
However, a return to segment underwriting profitability could lead to a sudden flattening of price movement going forward. Improved underwriting performance will eventually lead to competitive pressure and resistance from policyholders and regulators for further price increases. Companies that are
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