AM Best is maintaining a negative market segment outlook for the US personal lines insurance segment into 2024.
This decision, initially made in September 2022, is driven by continuous deterioration in the personal auto and homeowners’ insurance lines, compounded by rising loss costs influenced by inflationary pressures.
The agency’s latest report, titled “Market Segment Outlook: US Personal Lines,” underscores the challenges personal lines insurers face in achieving rate adequacy. The report also highlights increased reinsurance costs, driven by heightened catastrophe loss volatility and a rise in secondary peril activities.
