There are "generally modest expectations" for US property / accidents commercial price increases in 2019, says A.M. Best Co. Inc. in a report issued Tuesday.
Further price increases are expected in commercial cars, whose losses remain a draw on the industry's profitability, says Oldwick, New Jersey-based company in its report 2019 Review & Preview: US Property / Casualty, where it maintains stable outlook for the industry as a whole.
"Other responsibilities", which have had a number of years of favorable experience, largely driven by a positive development of previous years' losses, "Has shown more variation," the report says.
But other commercial lines are expected to remain flat or diminish modestly, the report says.
"The workers' compensation rates have had modest overall reductions in recent years, although much of the interest rate cut has been offset by higher wage bills due to higher employment levels and some upward wage pressure, the report says. Reporting an overall ratio of 1
US disaster losses reached a record high in 2017, while the fourth quarter of the fourth quarter broke Hurricane Michael and California fires in one. second year of long-term average disaster losses, according to the report.
Best estimate of net disaster losses in 2018 amounted to $ 37 billion in 2018, compared to $ 53 billion in 2017. The forecast for 2019 is a decrease to $ 31 billion. The report also claimed that higher interest rates "would give some fluctuations to the P / C industry in view of its high dependence on net investment income to increase profits, "but fourth quarter concerns in the US and global stock markets are expected to lower the overall return for the year as reported.