While the first quarter of 2022 brought steady underwriting growth for the property/casualty insurance industry, inflation is creating significant challenges for insurers.
During a time of uncertainty, having access to timely, reliable data and actuarial expertise is critical for insurers.
Claims costs are rising as material and labor costs surge. Premium rate increases are facing challenges from regulators. And growth in wages, legal fees, and medical costs could present a long-term challenge for insurers.
Consider the following facts.
- Net earned premiums rose 9.0% in first-quarter 2022 from a year earlier, but incurred losses and loss adjustment expenses (LLAE) increased 10.0% in the same time period.1
- Total reconstruction costs, including materials and labor, rose 13.5% in April 2022 from a year earlier.2
- The cost of auto body repairs grew 8 percent in November 2021 compared to 2020, the highest increase in four decades.3
During a time of uncertainty, having access to timely, reliable data and actuarial expertise is critical for insurers. In addition, gaining insight into trends like social inflation can help insurers, especially during a time when these trends are making the insurance landscape increasingly challenging.