June 3, 2019 11:30
Photo : Freepik
The market of insurance of individuals in the United States ended the year 2018 in growth, points out Fitch Ratings in its report to U. S. Personal Lines Market Update.
The company rating says that the sector has experienced an increase in direct premiums written of 8 % in 2018. In addition, the combined ratio for the segment increased to 99 %. Fitch notes that this is ” the best results from the market since 2013 “.
The combined ratio of the automotive and housing was respectively 98 % and 104 %.
The housing supported by the motor
These good results have seen the light of day thanks to the automobile insurance industry, finds Chris Grimes, director of insurance at Fitch Ratings. “[The sector] has benefited from several price increases, an increase in the number of subscriptions and a turning point in terms of the frequency of claims “, he adds.
Mr. Grimes explained that these results came to compensate for the problems that occurred on the side of the home insurance. According to him, climate change has had a direct impact on insurance companies. “The losses related to hurricanes, forest fires, and other events of the kind have hurt insurers “, he admits.
State Farm still ahead
For what is the market share of the personal insurance, State Farm retains its first place, ” says Fitch. In automobile insurance, however, other players like GEICO and Progressive reduce the gap. Also, GEICO should, if the trend continues, overtake State Farm in 2022, one can read in the report.
Home insurance, State Farm continues to dominate with 20 % market share. In fact, this number is two times higher than its closest competitor, Allstate, argues Fitch.