Fitch Ratings News

Fitch: Inflation Tied to Claims Severity Boosts U.S. P/C Insurers’ Reserve Risk in Casualty Lines

Fitch Ratings said it expects the U.S. property/casualty insurance industry to generate modest underwriting improvement in 2024, following poor auto insurance results and inordinate catastrophe losses in 2023. Persistently high inflation and slowing economic growth, along with an expectation for …

Fitch Says Sharp Drop in Claims Frequency Helped Commercial Auto Break Even, Almost

A sharp decline in claim frequency helped the commercial auto line achieve its best underwriting performance in a decade last year, but rising claim severity threatens to erode profits as traffic returns to US roadways, according to a report released …

Traffic Returning to Roadways, But Claims Patterns May Shift Permanently

The number of cars on US roadways is returning to normal as states ease COVID-19 restrictions, but that doesn’t necessarily mean claims frequency and severity will return to historic patterns. Metromile, a San Francisco-based pay-as-you-go auto insurer, expects a permanent …

Lloyd’s of London Sees ‘Large Loss’ Due to Suez Canal Blockage

LONDON — The blockage of the Suez Canal for nearly a week will result in a “large loss” for Lloyd’s of London, its chairman said on Wednesday, as the insurance market recorded a 900 million pound ($1.2 billion) pretax loss …

Fitch Cautious, but Economist Predicts ‘Isolated’ Impact From Business-Interruption Claims

While Fitch Ratings worries that litigation over COVID-19-related business-interruption claims is creating uncertain risk for property and casualty insurers, an economist who once served as a chief advisor to the industry said he doubts there will be a widespread impact. …

Hospital Costs Rising Even Though Claimants Avoiding Emergency Rooms

Auto casualty claimants are avoiding hospital emergency rooms during the COVID-19 pandemic but are generating increased hospital charges anyway, according to a new report by Mitchell, a San Diego-based claims administrator. “Anecdotally, we have heard that some people have been …

California Beset With Fires and Virus Sells $2.4 Billion in Debt

Last September, California entered its bi-annual bond sale flush with a ratings upgrade from Fitch Ratings and a $21 billion budget surplus. A year later, California kicks off its fall debt sales under dramatically different circumstances. Wildfires scorching thousands of …

Analysts Predict Trouble Ahead for Personal Auto as Claims Volume Returns to Normal

Insurers are making a bundle on personal auto because claims have plummeted, but the long-term outlook for the line isn’t so rosy, analysts say. Fitch Ratings last week reported that the short-term performance for auto insurers is “unsustainable, and we …

Moody’s to Weigh City Efforts to Cope with Climate Change in Bond Ratings

For Moody’s Investors Service, it’s no longer enough for cities to have plans addressing their risks from climate change. The company’s municipal-bond analysts, armed with data, will soon determine how those strategies compare with others — and may change their …

Fitch: Technology Needed to Reverse Commercial Auto’s Dismal Performance

The commercial auto line hasn’t returned an underwriting profit for eight years now. Growing claim severity is a big part of the problem. Advanced technology needs to be a part of the solution, according to a report released Tuesday by …