Two factors expected to drive the growth
Insights from Swiss Re’s latest sigma research suggest that 2023 will represent a transitional phase for US P&C industry profitability. The trajectory is expected to shift from a challenging 2022 to a more robust 2024, underpinned by improvements driven by higher premiums and increased interest rates.
However, the industry has not yet experienced the inflection point between premium growth rates and claims costs, according to the report. While there have been strong and accelerating rate increases in personal lines and a persistent hard market in commercial property, these have been counterbalanced by challenges such as the costliest second quarter for natural catastrophes since 2011, persistent inflation, and a slowdown in favorable res