Fitch Ratings expects follow-on health implications related to COVID-19 to continue to drive elevated health system utilization long after the acute phase of the pandemic has concluded, likely leading to increasing costs and higher insurance premiums for decades. These costs will emerge from the necessary addition to mostly outpatient capacity that is expected to come… Continue reading U.S. Healthcare System to Expand, Adapt to Long-Term COVID-19 Fallout
Tag: Fitch Ratings
U.S. Personal Lines Insurer Normalizing Auto Results Neutral to Credit
The trend of underwriting profits for U.S. personal lines insurance is likely to continue in 2021 but to weaken somewhat as record 2020 auto underwriting gains are unsustainable while homeowners’ results will likely recover from recent large underwriting losses, Fitch Ratings says in a new report. The personal lines industry posted a third straight year… Continue reading U.S. Personal Lines Insurer Normalizing Auto Results Neutral to Credit
Workers’ Comp Trends Expected to Remain Favorable in 2021: Fitch
Workers’ compensation underwriting performance is expected to remain strong in 2021 with favorable results driven by recent reductions in claims frequency and further recognition of material reserve redundancies, Fitch Ratings says. However, this level of profitability is unsustainable longer term, as claims trends are expected to normalize while competitive forces create renewed pricing pressure. The… Continue reading Workers’ Comp Trends Expected to Remain Favorable in 2021: Fitch
U.S. D&O Insurers Post Underwriting Losses Despite Record Premiums
Underwriting losses are expected to continue over the near term for the U.S. directors & officers (D&O) liability insurance segment despite a 67% cumulative increase in market premiums over the past two years, Fitch Ratings says. The market has been disrupted by a confluence of challenging economic, regulatory, legal, investment and social factors since the… Continue reading U.S. D&O Insurers Post Underwriting Losses Despite Record Premiums
U.S. P/C Insurers See Profits in 2020 Despite COVID-19 Fallout
Despite considerable operating challenges in 2020 from the global COVID-19 pandemic, U.S. property/casualty (P/C) insurers saw a statutory underwriting profit for the third consecutive year, according to Fitch Ratings in a new report. Apart from the tumultuous fallout of the pandemic, P/C insurers faced a deluge of catastrophic events including several hurricane landfalls, California wildfires,… Continue reading U.S. P/C Insurers See Profits in 2020 Despite COVID-19 Fallout
Global Reinsurance Sector Outlook Stable on Hardening Market
Fitch Ratings’ sector outlook for global reinsurance in 2021 is stable, reflecting hardening pricing conditions, stabilising pandemic-related claims but depressed investment income due to ultra-low interest rates and deteriorating asset quality. The sector outlook is based on an updated definition employed by Fitch, which considers underlying fundamentals expected in 2021 relative to actual fundamentals in… Continue reading Global Reinsurance Sector Outlook Stable on Hardening Market
U.S. Workers Comp Market to Report Strong Profitability in 2020: Fitch Ratings
Fitch Ratings has recently released a report that shows how the US workers compensation insurance market is positioned to report strong profitability in 2020. Despite considerable economic challenges from the ongoing coronavirus pandemic, the declines in economic activity led to reduced claims frequency that are currently outpacing pandemic-related losses. However, it’s been predicted by Fitch… Continue reading U.S. Workers Comp Market to Report Strong Profitability in 2020: Fitch Ratings
U.S. P/C Insurers Face Transition Risks to Post-Pandemic “New Normal”
U.S. Property and Casualty (P/C) insurers will continue to face new operational and risk management challenges from pandemic-related insurance losses and premium volume declines in 2021, Fitch Ratings says. Insurers able to manage the challenge of workforce flexibility, limit risk aggregations and reduce claims exposure through disclosure/exclusionary language and clarity of policy terms will be… Continue reading U.S. P/C Insurers Face Transition Risks to Post-Pandemic “New Normal”
U.S. Workers Comp Insurance Underwriting Profits to Normalize in 2021
The U.S. workers compensation insurance market is poised to report strong profitability in 2020, despite considerable economic challenges from the ongoing coronavirus pandemic, as declines in economic activity led to reduced claims frequency that are currently outpacing pandemic-related losses, Fitch Ratings says. However, underwriting performance in 2021 and beyond will likely deteriorate, as claims activity… Continue reading U.S. Workers Comp Insurance Underwriting Profits to Normalize in 2021
Accumulation of Catastrophe Losses Expected to Weigh on P/C Results
The U.S. P/C industry’s reported 3Q20 natural catastrophe losses will be the largest since 3Q17, driven by an elevated frequency of events during the quarter, according to Fitch Ratings. Fitch-rated (re)insurers are largely well-positioned to absorb these recent catastrophes, as carriers’ balance sheets were prepared for a potentially strong hurricane season and invested asset values… Continue reading Accumulation of Catastrophe Losses Expected to Weigh on P/C Results