2016: The U.S. property/casualty industry's combined ratio rose4 percentage points from the prior year, and commercial insurance rates are expected to remain soft for the foreseeable future.

    According to a Fitch Ratings report, in 2016, dragged down in part by adverse underwriting results at American International Group (AIG), the industry's property/casualty combined loss ratio rose to 99% for the year, even though the industry posted its fourth consecutive year of underwriting profit.Excluding AIG, the U.S. insurance industry's combined ratio improved by 3.4%.

    The Fitch report noted that long-tail casualty lines, strategic businesses and reinsurance commutations weighed heavily on AIG's overall results. With the U.S. commercial insurance market hardening, cyclical pressure on the insurance industry is expected to increase in 2017.

   2016: Commercial auto was the weakest-performing underwriting segment in the entire insurance market,with a combined loss ratio exceeding 110%; commercial property insurance was the key to underwriting profit for carriers, while workers' compensation was a bright spot in the insurance business over the past 2 years.

    Over the past 3 years, commercial insurance rates have remained persistently soft, with commercial property rates falling the most.Strong market capacity means no quick reversal in rates is in sight. Under heavy claims pressure, commercial auto is the only segment likely to see rate increases in the near term.

Source: Business Insurance, 2017-05-09