Record Property and Casualty Losses in 2023 Impact Underwriting
US Underwriting Losses Hit 10-Year High of $38 Billion, meaning more was paid in claims than taken in premium in 2023, leading to increased insurance rates in 2023 and 2024.
Key Take Aways for the US property & casualty insurance industry:
- Underwriting loss was $38 billion in 2023, a 10-year high.
- Underwriting loss is the amount of money an insurance company pays in claims which exceeds the amount of money they take in premium.
- Overall $65 billion in CAT losses in 2023
- CAT losses are a catastrophe loss due to a severe event that causes losses that are higher than usual.
- Typically hurricanes, floods, earthquakes
- $35 billion in CAT losses in 2023 were secondary: Hail, Tornado, Thunderstorms, Wildfires
- This almost double the annual amount.
- Besides the number and severity of incidents, inflation seen in rising property replacement values and higher repair costs also contributed.
Interesting Facts
- State Farm’s underwriting loss was $14 billion in 2023, the highest ever.
- State Farm’s non-auto losses grew by 40% or $8 billion from 2022 to 2023.
Reference Article
U.S. P&C Underwriting Losses Hit 10-Year High of $38 Billion
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial or professional advice.
