The last half-decade has brought about tremendous change as property and casualty insurers have been operating in an era of rising complexity. Continuous shifts in the economic landscape have led to the emergence of new risks and increased exposure to existing ones.
Executive Summary
Offering a review of trends impacting the P/C insurance marketplace, Scott Shapiro, the U.S. Insurance Sector leader of KPMG, brings three big ones into focus: technology, talent models and weather patterns.To remain competitive today and going forward, P/C insurers must understand the broader landscape while at the same time developing the capability to manage the increasing complexity of the risks they underwrite.
Take, for example, the COVID-19 pandemic. One significant change to emerge was in personal auto insurance loss trends. In 2020, loss frequency notably decreased because of reduced driving activity. Conversely, loss severity increased, often due to fewer vehicles on the road and a higher incidence of high-speed accidents. As a result, the loss ratio has risen considerably since 2020.
