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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 10, 2018 09:05 AM (EST)
AM Best is maintaining a stable market segment outlook for the commercial lines segment of the U.S. property/casualty insurance industry in 2019, citing robust risk-adjusted capitalization, profitability in the workers’ compensation line of business, modestly improved interest rates and the benefits of U.S. tax reform. AM Best also views stable reinsurance pricing as a factor in this outlook.
A new Best’s Market Segment Report, titled, “Market Segment Outlook: U.S. Commercial Lines,” states that these favorable factors are partly counterbalanced by ongoing concerns about the health of certain liability sublines, such as financial lines, as well as the commercial auto line. Intensifying price competitiveness is another challenge the industry faces, and the commoditization of commercial insurance products, particularly for smaller accounts, will require that companies pursue a variety of ways to differentiate their products beyond price. Other factors such as climate change will require long-term solutions; however, in the near term, while recent events have bruised the segment’s earnings, the foundation on which they have been generated remains solid.
The market segment report outlines other factors that are driving the outlook, including as follows:
To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=280767 .
For a video with Michael Lagomarsino, senior director, about the U.S. commercial lines segment outlook, please visit http://www.ambest.com/v.asp?v=commerciallinesoutlook1218 .
To access AM Best’s market segment report on the U.S. personal lines segment outlook, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=280747 .
AM Best is a global rating agency and information provider with a unique focus on the insurance industry.