WIAA
Citing data from AM Best, an Insurance Business article reports that California’s direct premium written for all private passenger automobile insurance rose 11.6% in 2023 to $36.49 billion.
According to the article, California is the nation’s biggest market for private passenger auto insurance, accounting for 11.5% of U.S. direct premium written. But higher premiums have not produced improved results for insurers. The article notes that California’s combined ratio for private passenger auto reached 109.98 in 2023, exceeding the total U.S. number of 100.35. And while things have been improving around the nation, California results got worse.
The article observes, “While the national average improved by nearly six points, California’s combined ratio worsened by over 1.5 points from 2022 to 2023. The state’s combined ratio had exceeded 100 only once since 2013, at 103.43 in 2016.”
Bob Passmore, vice president with the American Property Casualty Insurance Association, blames California’s poor results on state’s failure to act on needed rate increases.
Passmore remarked, “You cannot not have rate requests pending for more than a year while inflation drives up costs.”
