A new Best’s Market Segment Report, titled, “Market Segment Outlook:
AM Best believes the momentum of price increases across commercial lines is accelerating, with companies and producers reporting higher rates as 2019 played out. On the property lines side, the pricing actions reflect catastrophe losses in
The report outlines other factors that are driving the stable market segment outlook, including:
- AM Best expects overall current market conditions — price increases and maintenance of discipline with respect to terms and conditions—to continue through 2020; however, the commercial automobile line remains challenged despite several years of substantial rate increases;
- Although underwriting results have varied in recent years, due primarily to elevated catastrophe losses, overall operating and net results remain profitable, demonstrating an ability to increase capital organically; and
- Industry surplus resumed an upward momentum in 2019, with the markets rebounding and lower reported catastrophe losses, and has surpassed its year-end 2017 level.
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Source: AM Best