- 2,211
According to AM Best and the Insurance Journal: In regards to P&C Impairments, " five of the seven involving auto insurers, according to an AM Best special report."
Article.
"AM Best detailed the 2020 impaired insurers as:
Looking at a broader length of time, 2000-2020 "AM Best identified 395 impaired property/casualty insurers during those years, with the leading line of business being workers’ compensation, which accounted for 26% of the impairments during the period. ...
During the 20-years, personal lines insurers accounted for 28%, split between private passenger auto (20%) and homeowners (9%)....
Standing [and Selling] here in California, with so much wildfire damage, I find this report just fascinating.
Not exactly sure I understand these numbers in the article, but this part is also very noteworthy: "Diving into the causes of 97 of the impaired insurers, AM Best found that the leading reason for a company failure was fraud or alleged fraud – affecting 25 companies during the 20 year period."
Article.
"AM Best detailed the 2020 impaired insurers as:
- Two standard private passenger auto writers, consisting of a Texas reciprocal exchange and a New York insurer,
- Two non-standard private passenger auto insurers with business written in multiple states, primarily Florida and Texas,
- A risk retention group (RRG) that provided commercial auto liability and general liability insurance to independent owner operators and small trucking companies in seven states, primarily California (where the liquidator has filed a federal lawsuit against the president and several outside advisors alleging the defendants falsified bank documents to conceal the financial condition of the entity)
- A workers’ compensation insurer with business written primarily in New York and New Jersey and
- A title insurer that underwrote policies primarily for owners and mortgagees of residential properties in New York.
Looking at a broader length of time, 2000-2020 "AM Best identified 395 impaired property/casualty insurers during those years, with the leading line of business being workers’ compensation, which accounted for 26% of the impairments during the period. ...
During the 20-years, personal lines insurers accounted for 28%, split between private passenger auto (20%) and homeowners (9%)....
Standing [and Selling] here in California, with so much wildfire damage, I find this report just fascinating.
Not exactly sure I understand these numbers in the article, but this part is also very noteworthy: "Diving into the causes of 97 of the impaired insurers, AM Best found that the leading reason for a company failure was fraud or alleged fraud – affecting 25 companies during the 20 year period."