Skip to Main Content
VISUALIZE | INSIGHTS THAT POWER INNOVATION

For insurers, Q1 2022 brought underwriting gains, inflation concerns

While the first quarter of 2022 brought steady underwriting growth for the property/casualty insurance industry, inflation is creating significant challenges for insurers.

Property Casualty Insurance Results First Quarter 2022

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.

View the full report.


Neil Spector

Neil Spector is the president of underwriting solutions at Verisk.

Robert Gordon

Robert Gordon is senior vice president, policy, research and international at the American Property Casualty Insurance Association (APCIA).


Visualize Subscribe

Get the best of Visualize!

We'll send Visualize Monthly, and our most popular content, right to your inbox.

Subscribe now

  1. Verisk, “Property/Casualty Insurance Results: First-Quarter 2022,” < https://www.verisk.com/siteassets/media/downloads/property-casualty-insurance-results-first-quarter-2022.pdf > , accessed August 31, 2022. 
  2. Verisk, “Reconstruction cost rise slows—but from historic peaks,” July 15, 2022, < https://www.verisk.com/insurance/visualize/reconstruction-cost-rise-slows-but-from-historic-peaks/ > , accessed August 31, 2022.
  3. CollisionWeek, “U.S. Auto Body Repair Prices Up Over 8% in November Compared to 2020,” December 10, 2021, < https://collisionweek.com/2021/12/10/u-s-auto-body-repair-prices-8-november-compared-2020/"> , accessed July 14, 2022.

You will soon be redirected to the 3E website. If the page has not redirected, please visit the 3E site here. Please visit our newsroom to learn more about this agreement: Verisk Announces Sale of 3E Business to New Mountain Capital.