̽����ѡ

For immediate release
New York Press Office: 917-923-8245,��michaelb@iii.org

��

NEW YORK, Nov. 10, 2020—The U.S.’s property/casualty (P/C) insurers provided premium relief, retained employees, and weathered a capital market downturn while navigating this year’s COVID-19 pandemic, according to James Lynch, Chief Actuary,����(Triple-I).

“The pandemic affected almost every link in the property/casualty value chain, but the industry weathered the stress well,” Lynch stated, echoing remarks he made today at the��. “Private-passenger auto insurers returned around $14 billion in premiums this year to the nation’s drivers as miles driven dropped dramatically in the pandemic’s early months. This resulted in a five percent reduction in the cost of auto insurance for the typical driver in 2020 as compared to 2019. At the same time, the U.S.’s auto, home, and business insurers continued to employ two million-plus Americans as the industry responded to numerous natural disasters as well as the aftermath of civil unrest.”

This year’s record-setting����and��, coupled with����in multiple states, have caused insured loss payouts totaling tens of billions of dollars, according to the ̽����ѡ Information Institute.

The policyholders’ surplus—the amount of money remaining after the insurance industry’s cumulative liabilities are subtracted from its assets—, down from a record-high $848 billion as of Dec. 31, 2019, the Triple-I’s chief actuary noted.��The economic uncertainty in the U.S.’s capital markets in 2020’s first-quarter caused unrealized capital losses (stock declines) in insurer investment portfolios, Lynch said. Insurers who have faced lawsuits related to pandemic-caused losses also have faced the financial challenges of defending themselves, he added.

“Business income (BI) insurance coverage disputes captured media attention. Yet lawmakers nationwide have to date resisted calls to rewrite these policies retroactively as insurers faced a steady stream of lawsuits over their unwillingness to pay these claims,” Lynch said, explaining how BI coverage, also known as��, is generally triggered only when a business incurs direct physical damage to the business’ property. “The Triple-I’s����(FAIR) campaign launched in May has successfully explained why global pandemics are uninsurable and how only the federal government has the financial capacity to provide the relief small and large businesses need to weather this crisis.”

Lynch is concluding this week��a three-year term as an elected member on the CAS��.

��

The Triple-I has a full library of educational videos on its��. Information about Triple-I mobile apps can be found��.