Bayesian Ratings points out that in the past ten years, despite facing inflationary pressure and catastrophic losses, the underwriting performance and overall operating performance of the US property and accident insurance industry have improved. The rating agency said in a report released on Tuesday that the industry's underwriting rate has dropped from a peak of 27.8% in 2015 to 25.3% in 2024. Bayesian Ratings added that this improvement is due to the continued deepening of digitalization, automation and the application of cutting-edge technology. This change drove the industry's overall cost ratio down to 96.6% in 2024. According to Bayesian Ratings, the main driving force behind the decline in the fee rate comes from two aspects: first, the other acquisition fee rate fell by 1.9 percentage points, and the other was the slight decrease in the general fee rate by 0.5 percentage points. “The shift from a five-day fixed office model to a hybrid or fully remote work model has reduced rent expenses as a share of other acquisition costs,” the report said. This improving trend was particularly evident among insurers in the personal insurance business that underperformed in 2021 to 2023. The personal insurance business experienced a strong rebound in 2024, reversing underwriting performance from a loss of $32.8 billion to a profit of $11.8 billion in 2023, and a comprehensive cost ratio falling from 106.7% to 96.6%.

Bayesian Ratings points out that in the past ten years, despite facing inflationary pressure and catastrophic losses, the underwriting performance and overall operating performance of the US property and accident insurance industry have improved. The rating agency said in a report released on Tuesday that the industry's underwriting rate has dropped from a peak of 27.8% in 2015 to 25.3% in 2024. Bayesian Ratings added that this improvement is due to the continued deepening of digitalization, automation and the application of cutting-edge technology. This change drove the industry's overall cost ratio down to 96.6% in 2024. According to Bayesian Ratings, the main driving force behind the decline in the fee rate comes from two aspects: first, the other acquisition fee rate fell by 1.9 percentage points, and the other was the slight decrease in the general fee rate by 0.5 percentage points. “The shift from a five-day fixed office model to a hybrid or fully remote work model has reduced rent expenses as a share of other acquisition costs,” the report said. This improving trend was particularly evident among insurers in the personal insurance business that underperformed in 2021 to 2023. The personal insurance business experienced a strong rebound in 2024, reversing underwriting performance from a loss of $32.8 billion to a profit of $11.8 billion in 2023, and a comprehensive cost ratio falling from 106.7% to 96.6%.