Kemper

Inside P&C’s news team runs you through the key developments from the past week.

Jason Gorevic will step into the role following David Storch’s retirement in May following a 12-year tenure.

The firm is an outlier on the negative side both in its state mix and the speed of its rating actions.

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

The change in outlook comes after Kemper reported a $257mn UW loss for Q4, its third straight significant negative underwriting result.

Investors were reacting to the $257mn underwriting loss the company reported for Q4, and concerns the carrier’s rate increases are lagging the rise in claims severity trends.

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

The chief executive said a surge in costs for labor, auto body repairs and rental cars, along with the lagged effect of earned rate increases, all weighed on Kemper’s results.

In contrast to the second and third quarters, when Kemper took $81mn and $25mn reserve charges, the fourth quarter loss came from a spike in severity on current AY claims.

The latest report shows even higher inflation pushing up severity, forcing carriers to take rate.

The Inside P&C research team looks forward to the big issues of the new year.

The monthly CPI report shows that inflation continues to push severity higher as carriers take rate in response.