No big surprise here. The market for insurers is still challenging despite various efforts by various companies to return underwriting integrity back to the market place. Too many players, too much capacity and too much capital all point to this. And still I read bullish articles about AIG stock, still one of the biggest and still the main reason the market is as soft as it is. Oh well.
Automakers are putting more and more tech into cars. So much so, that auto part prices have more then doubled in most cases. This coupled with a massive increase in the purchase of expensive luxury trucks and large vehicles beginning in the summer of 2015(due to consumers holding out on the purchase of vehicles when fuel prices were previously high), followed by increased traffic on the roadways due to lower US fuel prices and we now have increased frequency and severity with a side of inadequate reserves. Loss ratio issues anyone?
No big surprise here. The market for insurers is still challenging despite various efforts by various companies to return underwriting integrity back to the market place. Too many players, too much capacity and too much capital all point to this. And still I read bullish articles about AIG stock, still one of the biggest and still the main reason the market is as soft as it is. Oh well.
Dave, do you think the Predictive Modelers were a bit off on results?
Curious that you post that the market is soft.
Not in Transportation.
Personal and Commercial Auto have had problems for a lot of carriers.
Automakers are putting more and more tech into cars. So much so, that auto part prices have more then doubled in most cases. This coupled with a massive increase in the purchase of expensive luxury trucks and large vehicles beginning in the summer of 2015(due to consumers holding out on the purchase of vehicles when fuel prices were previously high), followed by increased traffic on the roadways due to lower US fuel prices and we now have increased frequency and severity with a side of inadequate reserves. Loss ratio issues anyone?