John Carbone Porfilio

Commercial Lines Continue to Perform Better Than Personal, Though Overall Underwriting Loss Persists, New Triple-I/Milliman Report Shows

Retrieved on:

Tuesday, January 30, 2024

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The 2023 net combined ratio for the property/casualty industry is forecast to be 103.9, with commercial lines at 97.7, outperforming personal lines at 109.9.

Key Points:

The 2023 net combined ratio for the property/casualty industry is forecast to be 103.9, with commercial lines at 97.7, outperforming personal lines at 109.9.
Record levels of severe convective storm losses are the single biggest driver of the overall adverse results.
The quarterly report, Insurance Economics and Underwriting Projections: A Forward View, presented on Jan. 30, at an exclusive members-only virtual webinar.
“Looking at commercial auto, underwriting losses continue, with a projected 2023 net combined ratio of 110.2, the highest since 2017,” said Kurtz.

Cellphone Use Is Biggest Cause of Distracted Driving, Triple-I Report Finds

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Monday, January 22, 2024

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“As drivers returned to the roads following the pandemic, distracted driving surged, causing higher rates of accidents, injuries, and deaths.

Key Points:

“As drivers returned to the roads following the pandemic, distracted driving surged, causing higher rates of accidents, injuries, and deaths.
This high-risk behavior has worsened in the years since, having huge implications for the insurance industry and their policyholders,” stated Dale Porfilio, chief insurance officer, Triple-I.
Triple-I’s just-released report, Distracted Driving: State of the Risk, examines the effects of distracted driving and how it is contributing to more hazardous roadways and a higher combined ratio for personal auto insurers.
Cellphone use–which includes dialing, texting, and browsing–were among the most prevalent and highest-risk behaviors found in governmental and private sector studies, Triple-I’s report explained.

Home and Auto Insurance Less Affordable in Louisiana than in Any Other State in Nation, New Insurance Research Council Brief Finds

Retrieved on:

Wednesday, December 13, 2023

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Louisiana is the least affordable state in the country for both personal auto and homeowners insurance, resulting from a combination of multiple natural disasters, economic conditions and the state’s litigation environment, according to a newly-released Insurance Research Council (IRC) brief .

Key Points:

Louisiana is the least affordable state in the country for both personal auto and homeowners insurance, resulting from a combination of multiple natural disasters, economic conditions and the state’s litigation environment, according to a newly-released Insurance Research Council (IRC) brief .
Louisianians spend a greater share of their income on personal insurance, compared to other states.
“Affordability issues in Louisiana’s personal insurance sector stem from multiple cost drivers,” said IRC president Dale Porfilio, who is also chief insurance officer of the Insurance Information Institute .
Homeowners claims in Louisiana were more than 12 times more likely to involve litigation, compared with states other than Florida.”

Triple-I: U.S. Wildfires Remain Threat as Their Frequency Decreases

Retrieved on:

Thursday, December 7, 2023

The potential insured losses resulting from U.S. wildfires are growing even as their frequency decreases because close to 99 million Americans reside in the wildland urban interface (WUI), according to the Insurance Information Institute (Triple-I).

Key Points:

The potential insured losses resulting from U.S. wildfires are growing even as their frequency decreases because close to 99 million Americans reside in the wildland urban interface (WUI), according to the Insurance Information Institute (Triple-I).
The total number of U.S. wildfires has generally been on a downward trajectory over the past decade except for 2017 and 2018.
The latter years were when the nation’s three costliest wildfires , as defined by insured losses, occurred in California.
Since that time, state and local authorities have invested heavily to mitigate the human causes of wildfires, the Triple-I’s Issue Brief notes.

Triple-I: Plaintiffs Should Disclose Third-Party Funding Arrangements

Retrieved on:

Wednesday, December 6, 2023

Third-party litigation funders (TPLF) provide billions of dollars each year to U.S. plaintiffs and their legal counsel, yet only a handful of U.S. states, such as Indiana and Montana , have required plaintiffs to disclose in court whether a TPLF is financially supporting a civil lawsuit.

Key Points:

Third-party litigation funders (TPLF) provide billions of dollars each year to U.S. plaintiffs and their legal counsel, yet only a handful of U.S. states, such as Indiana and Montana , have required plaintiffs to disclose in court whether a TPLF is financially supporting a civil lawsuit.
“Without transparency, we are not able to provide deep data-driven insights about TPLF’s impacts on consumers and the insurance industry.
GL products are where more of the complex and high-limit litigation occurs for large corporations.
Legal system abuse contributes to higher costs for insurance operations and policyholder pricing, Triple-I’s chief insurance officer concluded.

IRC: Natural Disasters, Rising Repair Costs Making U.S. Home Insurance Less Affordable

Retrieved on:

Tuesday, November 14, 2023

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The growing frequency and severity of natural disasters, combined with rising home repair costs and other economic factors, have contributed to less affordable homeowners insurance, according to a newly-released Insurance Research Council (IRC) Research Brief.

Key Points:

The growing frequency and severity of natural disasters, combined with rising home repair costs and other economic factors, have contributed to less affordable homeowners insurance, according to a newly-released Insurance Research Council (IRC) Research Brief.
The IRC, an affiliate of The Institutes , measures affordability with the ratio of average homeowners insurance expenditures to median household income.
In other words, U.S. households spent an average of 1.93 percent of their income on homeowners insurance.
Homeowners insurance was most affordable in Utah, where households spent 0.92 percent of their annual income on homeowners insurance in 2020.

Inflation, High Interest Rates, and Catastrophes Contribute to 2023 Underwriting Loss for P&C Industry, New Triple-I/Milliman Report Shows

Retrieved on:

Thursday, November 2, 2023

The quarterly report, Insurance Economics and Underwriting Objections: A Forward View, was presented on Nov. 2, at an exclusive members only virtual webinar.

Key Points:

The quarterly report, Insurance Economics and Underwriting Objections: A Forward View, was presented on Nov. 2, at an exclusive members only virtual webinar.
“P/C growth has improved in 2023, growing 1.3% versus 2.1% for overall gross domestic product (GDP).
Léonard noted that top risk scenarios for 2024 include geopolitics, weaking employment and gross domestic product (GDP) contraction.
Turning to workers’ compensation, Kurtz noted that the 2023 net combined ratio forecast of 90.6 continues the string of underwriting profits.

14 Percent of U.S. Drivers Were Uninsured in 2022, IRC Estimates

Retrieved on:

Tuesday, October 31, 2023

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Wyoming (5.9 percent), Maine (6.2 percent), and Idaho (6.2 percent) were the three states with the lowest percentage of uninsured motorists last year, the IRC report said.

Key Points:

Wyoming (5.9 percent), Maine (6.2 percent), and Idaho (6.2 percent) were the three states with the lowest percentage of uninsured motorists last year, the IRC report said.
The percentage of uninsured motorists stood at 11.1 percent in 2019 before increasing to 13.9 percent in 2020 and 14.2 percent in 2021, before slightly declining to 14.0 percent in 2022, the IRC estimated.
The ratio of UM-to-BI claim frequencies yields a reasonable estimate of the proportion of injury-producing accidents caused by uninsured or hit-and-run motorists.
The largest percentage increases in the number of uninsured drivers during this period (2017-2019) were in Florida and Michigan.

IRC Survey Finds Support for the Use of Insurance Rating Factors

Retrieved on:

Tuesday, September 12, 2023

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“Survey data shows overall positive attitudes toward rating variables, with variations across demographics,” the IRC’s report, Public Perceptions Regarding the Fairness of Insurance Rating Factors , stated.

Key Points:

“Survey data shows overall positive attitudes toward rating variables, with variations across demographics,” the IRC’s report, Public Perceptions Regarding the Fairness of Insurance Rating Factors , stated.
Yet those were the only three—out of 14 rating variables—which did not secure majority support among survey respondents.
The rating variables used by homeowners insurers received even broader support, with all 19 factors deemed to be fair by sizable majorities, the IRC survey determined.
“Yet at the same time, consumers expressed widespread support in our survey for the fairness of the rating factors used by insurance carriers to price their auto and homeowners policies,” Porfilio added.

Inflation, High CAT Losses to Lead to 2023 Underwriting Loss for P&C Industry, But Recession Likely Avoided This Year, New Triple-I/Milliman Report Shows

Retrieved on:

Thursday, August 3, 2023

The quarterly report, Insurance Economics and Underwriting Projections: A Forward View, was presented on August 3 at an exclusive members only virtual webinar.

Key Points:

The quarterly report, Insurance Economics and Underwriting Projections: A Forward View, was presented on August 3 at an exclusive members only virtual webinar.
CPI will likely stay in the mid-to-upper 3% range through the end of the year,” Léonard said.
“For commercial auto, 2022 saw a return to underwriting losses, as the industry logged a 105.4 net combined ratio, the highest since 2019.
She also revealed that the “long tail” line for workers compensation claims has gotten progressively shorter over recent years.