BRAVADO Strengthens its Ability in the P&C Industry

The property and casualty insurance sector completed 2021 strong and is still able to service policyholders despite bearing an underwriting loss. Following a $5.2 billion underwriting gain in 2020, the insurance industry suffered a $3.8 billion net underwriting loss in 2021 as incurred losses and loss adjustment costs increased by 11.1% while earned premiums only increased by 7.4%. The combined ratio also declined, going from 98.6% in 2020 to 99.6% in 2021. According to analysts, the property and casualty (P&C) re/insurance sector is poised for higher underwriting profits in 2022, supported by ongoing positive trends in commercial lines pricing and a potential stabilization in the personal vehicle market.

Significant deterioration in the personal auto sector has been the main cause of losses. Inflation, supply-chain disruptions, and geopolitical risk are anticipated to continue driving insured losses and premium rates higher across the majority of product lines.

Replacement-cost increments that are significantly higher than pre-COVID levels and weak underlying growth all contribute to the economic fundamentals' continued restriction of insurance expansion. To counteract pressures from social and economic inflation loss, more rate rises are required.

We predict an increase in P&C premiums of 8.5% this year. Due to the challenging market, this growth is less than the 9.2 percent growth in 2021 but is still significant. In order to deliver an outstanding performance and decrease the losses, our BRAVADO team has accepted the challenge and is honing their skills.