Inflation is bringing rising loss costs for US commercial property/casualty insurers, according to Fitch Ratings, which reviewed reports from three US insurers — Cincinnati Financial Corp., HCC Insurance Holdings Inc., and Selective Insurance Group Inc. — to gauge trends for the sector.
As financial performance is a highly weighted credit factor for this group of insurers, their ratings benefit from underwriting profitability, which in turn is reliant on premium rates keeping pace with claims cost trends, affirmed Fitch in a report titled “US Commercial Property/Casualty Insurers – Peer Review March 2024.”
Fitch explained that sources