Industry Challenges: Layoffs and Escalating Expenses

News Brief: Layoffs at Nationwide, Geico | Legal, Medical Costs Bite

Just when it seemed as if the industry was done trimming its workforce,?Nationwide?and?Geico?said they were going to reduce staff. Five percent at Nationwide, or about?1,200 positions, and?about 10%?of the IT staff at Geico.

Despite a drop in the number of lawsuits filed last year, six of the 10 largest P&C companies?spent more?on legal fees than in 2022. One of them,?Progressive, spent about 50% more.

Another expense that looks like it's going to continue to weigh on insurance companies — auto carriers, specifically — is?medical treatment costs, especially for third-party casualties.

Chart of the week

Keep reading

Nationwide to Shed 1,200 Jobs Via Attrition, Layoffs

Geico Lays Off Close to 10% of IT Staff

Legal Expenses Continue to Climb for Most Top Carriers

Surge in Medical Costs Poses Next Challenge for Auto Insurers

Smaller Carriers Outshine Large in S&P Performance Rankings

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