Insurance sector navigating a significant price-risk adjustment

Kathy Bostjancic ()
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Kathy Bostjancic: Nationwide Mutual

Business Economics, 2025, vol. 60, issue 1, No 8, 34-43

Abstract: Abstract This article examines the recent price-risk adjustments in the insurance sector, driven by complex risks, pandemic-related inflation, and increased underwriting losses. It highlights the accelerated price adjustments in auto and home insurance, the impact of legal system abuse on commercial liability insurers, and the heightened risks in property insurance due to natural disasters. The repricing of premiums has restored profitability for property and casualty insurers, though moderate price increases are expected to continue. Additionally, the article discusses the rising repair costs for advanced vehicle technologies, contributing to higher insurance premiums. The findings underscore the ongoing challenges and strategies within the insurance industry to navigate these adjustments.

Keywords: Covid; Pandemic; Insurance; Inflation; Federal reserve; Tariff; Auto; Home; Litigation abuse; Natural disasters (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1057/s11369-025-00387-5

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