MCA Video: Emerging Trends in Personal Lines [Part 1]
By Tom Torcia
Go behind the headlines to see how data and analytics are reshaping the insurance industry. Tom Torcia, MCA’s Chief Analytics Officer will discuss four key emerging trends in personal lines and how to be proactive in managing through today’s disruptive environment.

VIDEO TRANSCRIPT

Hi, I’m Tom Torcia, Chief Analytics Officer at Mutual Capital Analytics. In this video series, we’re going to go beyond the headlines to share how data analytics is reshaping the world. Let’s dig into the key emerging trends and personal lines. Today, I’ll share those key trends that we’re seeing in the industry, how carriers are reacting and how to manage through today’s current environment.

My four key takeaways will give you a sense of how you can be proactive in managing through today’s disruptive environment.

All personal insurers are being impacted. Industry wide loss pressure is impacting auto and property lines of business. Carriers from the east to west, north and south, regardless of size are having to face challenges in the marketplace today.

Strong pricing environment will continue into 2023. Double digit rate increases are continuing, we’re seeing it across auto and property lines of business.

In a recent Allstate quarterly earnings result, they were very clear to say that the momentum they saw in late 2022 will continue into 2023. All carriers are impacted and this emerging trend of rising rates, in my belief, will continue. Hardening reinsurance market. We’re continuing to see challenging environments from both a weather and non-weather perspective.

Carriers are trying to balance both segmentation and underwriting to mitigate risk and create strong portfolio position as we go through 2023 and beyond. The tipping point may be in the second half of 2023. If there’s anything we can gather from the early indications and results from quarterly earnings, it’s that carriers, especially national carriers, are really starting to move right through the marketplace.

It is difficult to forecast, and it will be a challenge for all insurers to quantify, but from a timing perspective, we’re really looking at a potential mid half of 2023 into second half of 2023 being that tipping point on written rate adequacy. An important inflection point we want to really watch and monitor as we continue to see results in the macroeconomic environment start to materialize.

Stay tuned for more from MCA.