US Property and Casualty Insurance 2020 Outlook
February 19, 2020
In a recent Kroll Bond Rating Agency (KBRA) report, titled US Property and Casualty Insurance 2020 Outlook: Bedrock Capital Underpins Stability, the rating agency said it believes the US property and casualty insurance sector in 2020 is stable, based on its expectations that the industry's strong capital, improved pricing, and disciplined underwriting will provide stability through the year. These industry strengths offset declining support to profit margins from decreasing favorable reserve development, increasing loss costs, social inflation, ongoing catastrophe losses, rising reinsurance costs and retentions, and low interest rates.
The industry has achieved record levels of policyholder surplus, which KBRA believes is sufficient to absorb catastrophes similar to those of 2017 or 2018 along with a moderate investment downturn. KBRA expects the industry to perform well into 2020 as insurers continue to actively manage these existing and emerging challenges.
The full 12-page report is available free of charge at KBRA's website.
February 19, 2020
