P/C Insurance Industry Sees Improved Underwriting Outlook Through 2028
Event summary
- Triple-I and Milliman project stronger underwriting performance across major P/C insurance lines through 2028.
- P/C underlying growth expected to outpace U.S. GDP growth, despite geopolitical risks like the Persian Gulf conflict.
- Personal lines showed strong Q1 results, while commercial auto and general liability face elevated loss ratios.
- Workers’ compensation benefits from stable employment and wage trends, contributing to favorable underwriting conditions.
The big picture
The P/C insurance industry is experiencing a period of stabilization, with favorable underwriting conditions driven by economic growth outpacing GDP. However, persistent risks—such as geopolitical uncertainty, elevated catastrophe exposure, and liability pressures—require disciplined underwriting and risk-based pricing to maintain long-term stability. The forecast highlights the need for insurers to navigate line-specific challenges while capitalizing on stable employment trends in workers’ compensation.
What we're watching
- Geopolitical Risks
- Whether easing tensions in the Persian Gulf will reduce inflationary pressures on P/C economic drivers.
- Line-Specific Challenges
- How commercial auto and general liability insurers will manage persistent loss-cost pressures amid broader industry improvement.
- Workers’ Compensation Stability
- The pace at which rising interest rates and potential frequency pressures could impact workers’ compensation underwriting results.