In addition, Amex Assurance has a favorable underwriting expense
structure due to its low cost direct marking distribution platform.
The statistics also explained that combined ratio has grown from 103.2 percent in 2017 to 163.4 percent in 2018 because of significant rise in Management Expenses by 72 percent that caused the Underwriting Expense
Ratio to rise by 46.8 percent YoY.
Commercial Auto 2017 Commercial Auto Net Premiums Written Number of Carriers (US$ billions) Superior Performers 21 $11 Investors 10 3 Value Diluters 6 1 Study Total 37 15 2012-2017 Average Ratios (%) (%) LOSS & LAE Superior Performers 73% 71.3 Investors 20 81.8 Value Diluters 7 79.8 Study Total 100 78.2 Underwriting Expense
Combined (*) Superior Performers 27.1 98.5 Investors 32 113.8 Value Diluters 33.7 113.5 Study Total 29.4 107.7 (*) Includes policyholder dividends Source: ACORD research using A.M.
The data on underwriting gains and losses, investment income, loss ratio, underwriting expense
ratio, combined ratio, net premiums written, unearned premium reserves, and loss reserves were gathered from the Best's Aggregates and Averages--Property and Casualty.
would be about $300 for an applicant ages 30 to 65 who was a standard risk, and about $600 for an applicant ages 30 to 75 who was a substandard risk.
However, underwriting expense
growth has outpaced premium growth through the first two quarters of 2015, with total underwriting expenses
up 4.5% to $71.7 billion, the report says.
Likewise, reduced loss adjustment or underwriting expense
are valuable goals, but it's much more valuable to minimize indemnity leakage and make good underwriting decisions to control the loss ratio.
For the 2010 second quarter, the combined ratio of Arch's re/insurance subsidiaries consisted of a loss ratio of 58.3 percent and an underwriting expense
ratio of 31.7 percent, versus a loss ratio of 57 percent and an underwriting expense
ratio of 30.2 percent for the 2009 second quarter.
That said, fully underwritten products are more justifiable from an underwriting expense
standpoint--and easier on the applicant's pocketbook because of the higher premium charges for ROP term products.
The company's 2003 earnings expectation is built on assumptions that include a decline in refinance volume in the mortgage origination market, with purchase money volume continuing to remain strong; improving persistency due to lower refinances; lower growth in earned premiums; lower underwriting expense
due to lower refinances; and higher incurred losses (all comparisons are between 2003 and 2002).
That difference, Everett explains, is known as the combined loss ratio, the amount of claims and underwriting expense
compared with the premiums collected.