Growth in direct premiums written in the real estate / accident sector is expected to approach 5.8% this year, according to a report from S&P Global Inc. released on Tuesday. 99.7 for the year, which would make 2021 the fourth year in a row with insurance gains for the industry, said S&P.
"The US P&C industry has not produced combined conditions of less than 100% for four consecutive calendar years during the 25 years for which S&P Global Market Intelligence has collected statutory information. Our view assumes that history will
For 2020, 2019 and 2018, the conditions were 98.7, 98.9 and 99.2, respectively. In 2017, the P / C sector showed a total share of 1
The pandemic has had an uneven effect on the sector, says S&P.
"For some, the pandemic was affected by the premium volume but raised the insurance guarantee. Profitability to historic highs. For others, both premiums and profitability tumbled," it said.
To a large extent, the P / C industry has coped well with the pandemic.
"The real estate and damage facility's worst fear of the breadth and depth of the effects of COVID-19 was not achieved, especially not in the US market," says S&P. "Well-worded exceptions to standard commercial package policies are largely protected carriers from adverse legal interpretations of claims for business interruptions. "
However, there are ongoing challenges for the sector. "The negative impact of the rising frequency and severity of civil disputes weighs on subscription results for several key business areas," says S&P.
The S&P report is based on an analysis of industry-level information statutory financial reports submitted to the National Association of Insurance Commissioners by more than 2,600 U.S. P / C insurance companies.