Private Passenger Auto Insurance Industry Underwriting Expenses, 2023 (1)
| Expense | Percent of premiums |
|---|---|
| Losses and related expenses (2) | |
| Loss and loss adjustment expense (LAE) ratio | 85.0% |
| Incurred losses | 75.2 |
| Defense and cost containment expenses incurred | 2.3 |
| Adjusting and other expenses incurred | 7.5 |
| Operating expenses (3) | |
| Expense ratio | 19.6% |
| Net commissions and brokerage expenses incurred | 7.4 |
| Taxes, licenses and fees | 2.2 |
| Other acquisition and field supervision expenses incurred | 5.5 |
| General expenses incurred | 4.5 |
| Dividends to policyholders (2) | 0.3% |
| Combined ratio after dividends (4) | 104.9% |
(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($294.0 billion in 2023).
(3) As a percent of net premiums written ($306.6 billion in 2023).
(4) Sum of loss and LAE, expense and dividends ratios. Calculated from unrounded data.
Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.