Rates

Strategic Review Committee chairman Bruce Simberg sets out the challenge ahead for FedNat as natural catastrophes continue to hit southern policyholders.

Price increases for high-hazard risks range between 15%-25%, down from +30% increases last year, while better performing classes are seeing 5%-10% rate increases.

“When you deploy property aggregate, the return you need on that is meaningful in light of the risk that you’re assuming,” Zaffino said Thursday. “I’m not sure if a plus mid-single digit [rate increase] gets you there in light of the [loss activity] we’re looking at.”

Texas’s objection to Progressive’s recent rate filings garnered attention, calling rates “excessive” and suggesting rebates instead.

Respondents said that cyber underwriters were responding to the growth of ransomware attacks and poor risk management.

July CPI data show first decline in auto premiums since December, but prices overall continue to rise.

Property, GL, umbrella, and BOP rates all accelerated, while workers’ compensation remained in negative territory.

Moody’s expects RMS, which had about $320mn in revenue around $55mn in operating income last year, to become accretive to earnings by 2025.

Horace Mann will adjust rates soon to deal with higher labor and materials costs.

From storms to Covid, large catastrophes are affecting P&C terms and limitations.

Adjusted for large renewals and IPOs, the pricing index rose 7.7% in the second quarter.

COO Brian Haney pushed back on the notion that rate hikes had hit their peak and said he expected rising inflation to "prolong the hard market".