Allstate

Need to Know

Part of the company's plan to improve auto insurance margins is to file for greater rate increases in 2023, along with lowering operating expenses and advertising spend.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

The firm recorded a $282mn reserve charge in the quarter, of which $180mn was related to an increase in personal auto claim frequency attributable to prior accident years.

Five auto insurers receive approval to raise rates after 32-month halt by the California Department of Insurance.

After market close on Wednesday, the carrier disclosed an estimated combined ratio of 109.1% for the quarter, adding 10 points year on year.

For the same period in 2021, the company reported a combined ratio of 98.9%.

Although 2022 was on balance, a good year, macro-economic issues such as a slowing economy, falling employment, and loss cost reversion could create an overhang for 2023.

Personal lines insurers see a vastly different outlook in 2022 than 2021 and their reserve development reflects this.

This price hike contributed to a premium increase of $695mn in the month, bringing the year-to-date impact of 2022 rate increases to $3.6bn.

Inside P&C’s news team runs you through the key highlights of the week.

In Texas, the company expects roughly 50% rate increases, whereas in California, the company received approval for a 6.9% increase.