2024 has been a volatile year for P/C carriers, prompting many insurance professionals to speculate about what 2025 has in store. On a positive note, U.S. carriers posted a $4.1 billion net underwriting gain on P/C for the first nine months of 2024. That’s outstanding news, especially when we look back at the $32.1 billion loss from the same period in 2023. These positive results were influenced by $8.5 billion of favorable reserve development and an uptick in the industry’s combined ratio to 97.9.

P/C claims organizations also faced continuing pressures, though. Litigation rates went up, and we saw yet another increase in the total number of nuclear verdicts. Claims and loss development continue to be volatile, with so-called “sleeper” claims on the rise. Core inflation is having an impact as well, driving up the cost of medical care for claims involving a bodily injury.