The Property/Casualty Landscape: Profitability, Growth – Disruption?

This presentation, given at the meeting in Atlanta, of the Casualty Actuaries of the Southeast, gives an overview of the current property/casualty insurance market and looks at issues that may affect the industry’s future. The industry in 2016, while profitable, has seen profits lag in the first half of 2016 before increasing auto insurance costs and an increase in catastrophes, particularly in Texas. Personal auto insurance has also been affected by increases in both the accident rate and the size of claims across most coverages. The increase in the accident rate appears largely attributable to an increase in the number of persons employed, as the commute increases the total number of miles driven. An increase in traffic fatalities is given as evidence that the size of accidents is growing. The presentation concludes with a discussion of potential industry disrupters, including a new Peer-to-peer (P2P) insurer, Lemonade, whose business model was recently announced.