A number of personal Auto insurers will implement mid-single-digit rate increases over the next several quarters, to offset higher claim frequency and severity trends, according to the ”P&C Personal Insurance—U.S. Outlook” from Moody's Investors Service. Current severity trends reflect new car sales at near-record levels, increased fraud, higher speed limits in certain states, pricier vehicle components and more serious accidents.
Moody's says to also expect low-to-mid-single-digit rate increases in the Homeowners' market, which will drive underlying margins and lower reinsurance costs.
Below, a summary of the findings from Moody's. Click image to enlarge.
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