Analysis by ratings agency A.M Best finds that in the first nine months of 2020, the U.S. property / casualty insurance industry saw its underwriting income fall to $600 million, compared with income of $4.5 billion for the same period in 2019.
Before the arrival of a global pandemic, 2020 was already going to be a challenging year for the industry. COVID-19, combined with an extremely active Atlantic hurricane season saw loss and loss adjustment expenses (LAE) rise by 2.3% year-on-year, to $328.4 billion.
This challenge puts cost optimisation amongst the top priorities whilst at the same time maintaining innovation and delivering the online customer experience standards and formidable logistical effectiveness of Amazon to customer UX and supply chain management.
2021 is the year No-Code insurance platforms become e vital part of insurers and brokers core systems. Even as digital wrap-arounds as the incumbents deal with technical debt. No-Code and cost-effective transaction/subscription licensing with fast time to value does give time for insurers to replace legacy and high-code cores in an affordable and convenient time frame
The ratings agency adds that it is witnessing greater changes in line of business underwriting results than normal, noting favourable results for the personal lines segment, and deteriorating results for the commercial and reinsurance segments. “We expect these trends to extend into fourth quarter 2020 results,” says A.M. Best.