"To harden rates, there has to be an impetus, and in this case, the industry points to 'social inflation,' not replenishment of capital,” said Tracy Dolin, credit analyst at S&P Global Ratings. (Photo: Shutterstock) “To harden rates, there has to be an impetus, and in this case, the industry points to ‘social inflation,’ not replenishment of capital,” said Tracy Dolin, credit analyst at S&P Global Ratings. (Photo: Shutterstock”To harden rates, there has to be an impetus, and in this case, the industry points to ‘social inflation,’ not replenishment of capital,” said Tracy Dolin, credit analyst at S&P Global Ratings. (Photo: Shutterstock)

The P&C insurance industry is once again motivated to “find religion” on pricing thanks to mounting concerns about loss emergence, says a new S&P Global Ratings report.

The industry’s new-found drive comes amidst a loss-cost driven hardening rate cycle, says the “The Outlook On The U.S. Property/Casualty Insurance Sector Remains Stable; ‘Social Inflation’ Puts A Spotlight On Pricing Complacency” report. With market capital recently reaching record highs, the current cycle is in contrast to previous years when rate cycles were driven by capital-replenishment, explains S&P. Yet, despite ample capital, “P&C insurers are still demonstrating restraint by withdrawing underwriting capacity in underperforming business lines, raising attachment points, and reducing limits and asymmetrical re-pricing efforts where it is needed the most,” the report notes.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?


NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Heather A. Turner

Heather A. Turner is the managing editor of ALM's NU Property & Casualty Group. She can be reached at [email protected].

More from this author

 

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.