The pandemic affected almost every link in the property / accident value chain, but the industry coped well with the stress, according to Triple-I chief actuary James Lynch.
"US Property / Accident (P / C) Insurers Provided Premium Assistance, Retained Employees and Cope with a Downturn in the Capital Markets When Navigating this Year's COVID-1
“Private passenger car insurance companies returned about $ 14 billion in premiums this year to the country's drivers as mileage fell dramatically during the first months of the pandemic, resulting in a five percent reduction in car insurance costs for the typical driver in 2020 compared to 2019. At the same time, US car, home and business insurance companies continued to employ two million plus Americans as the industry responded to many natural disasters as well as the aftermath of civil unrest. ”
This year's record-breaking hurricanes and wildfires, combined with civilian disruption in several states , has caused insured loss payments totaling tens of billions of dollars. surplus – the amount of money remaining after industry's cumulative debt has been deducted from its assets – amounted to $ 826 billion on June 30, 2020, down from a record high of $ 848 billion on December 31, 2019.  The economic uncertainty in US capital markets during The first quarter of 2020 caused unrealized capital losses (deterioration of shares) in the insurance company's portfolios, Lynch said. Insurers who have faced lawsuits related to pandemic losses have also faced the financial challenges of defending themselves, he added. Still, lawmakers nationwide have so far resisted calls to rewrite these policies retroactively, as insurers faced a steady stream of lawsuits due to their unwillingness to pay these claims, says Lynch, explaining how BI coverage, also known as business breakup insurance, in general is triggered only when a company suffers direct physical damage to the company's property.
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