OLDWICK, N.J.--(BUSINESS WIRE)--In this AMBestTV episode, Kimberly Muccia, senior financial analyst, AM Best, said fewer catastrophe losses in 2018, along with better underwriting performance by smaller mutuals, led to better overall results for AM Best-rated U.S. property/casualty (P/C) mutual insurers. Click on http://www.ambest.com/v.asp?v=mutuals919 to view the entire program.
AM Best-rated U.S. P/C mutuals sharply improved their underwriting performance in 2018. Muccia addressed the drivers behind the sector's net income last year, which tripled to more than $20 billion.
“The improved operating performance was largely driven by the sector’s improved underwriting performance,” said Muccia. “There were less catastrophe losses in 2018, as more normal weather patterns in territories that mutuals operate in helped to improve the bottom line.”
Muccia also highlighted how mutuals can further their innovation.
“Innovation is definitely becoming increasingly more critical to all organizations, and the mutual segment is no exception. However, some of the smaller ones might not have innovation in their expense budget to invest in third-party resources. Nonetheless, one of the ways they could focus on innovation is through the use of cross-functional training. They could utilize the ideas of their employees and look at the obstacles that they are facing. By organizing, as well as prioritizing these ideas, it could help their companies adapt to the changing market dynamics.”
To access a copy of this market segment report, titled, “U.S. Property/Casualty Mutual Insurers:
Underwriting Results Improve; Challenges Remain,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=289910.
For full coverage of the recent National Association of Mutual Insurance Companies’ (NAMIC) annual convention, please visit http://www.ambest.tv/namic19.
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