According to VerticalIQ, insurance industry revenues have grown significantly over the past few years and premiums have been rising. However, this was driven in large part by rising costs, especially from auto collision and natural disaster claims. 2024 was the first year this decade where P&C insurers netted an underwriting profit, highlighting how loss severity has outstripped premiums increases in most lines.
The insurance industry is projected to grow 2-3%, roughly in-line with the broader economy. However, destruction from natural disasters and losses from auto collisions pose significant future challenges.
