Conning–Property-Casualty Industry Loss Reserve Position Strengthened in 2017

By a News Reporter-Staff News Editor at Insurance Weekly News -- Conning's annual study of the property-casualty industry's loss reserves find that the overall reserve position appears to be sufficient, after again strengthening in 2017.

"The property-casualty insurance industry's reserve position improved slightly in 2017," said Bill Burns, Vice President, Insurance Research at Conning. "The industry continues to carry sufficient reserves, assuming claims settlement patterns continue at the current pace. However, there is a concern that with more robust growth and inflation, settlement patterns may well change, adversely impacting loss reserve adequacy."

The Conning study, "2017 Property-Casualty Loss Reserves: Not What We Were Expecting" reviews the property-casualty industry's loss reserve position at the end of 2017, by line of business and in total.

"The industry experienced favorable loss development of $12.5 billion in 2017, based on the preliminary data used for our analysis," said Steve Webersen, Head of Insurance Research at Conning. "This is the twelfth consecutive year that the industry has had favorable development from prior accident years, and 2017's favorable development exceeded our estimate of the reserve redundancy embedded in the year-end 2016 carried reserves. However, despite the favorable position of the industry overall, the auto and other liability lines are deficient, and are a cause for concern."

"2017 Property-Casualty Loss Reserves: Not What We Were Expecting" is available for purchase from Conning by calling (888) 707-1177 or by visiting www.conningresearch.com.

Keywords for this news article include: Conning.

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