The Hanover

Insurers could face pressure if interest rate and recession fears intersect with worsening loss cost trends.

The CFO attributed THG’s worsening first quarter combined ratio to increased severity in auto and homeowners claims.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

The results fall in line with other personal lines carriers, which have faced a tumultuous time offsetting loss cost trends but sought reprieve in their commercial lines segments.

March’s CPI report shows elevated inflation levels, including vehicle CPI of 10.5% and average used car price increase of 24.7%.

The carrier said agents who form strategic partnerships with select specialty carriers gain a “unique advantage” in the market.

The Hanover swung back to underwriting profit of $88mn after a cat-heavy Q3.

The company’s fourth quarter combined ratio increased by 0.5 points to 92.9% year-on-year.

The program offers E&O insurance coverage for real estate agents, appraisers, title agents, abstractors, home inspectors and mortgage brokers.

The latest report shows even higher inflation pushing up severity, forcing carriers to take rate.

The Inside P&C research team looks forward to the big issues of the new year.

The monthly CPI report shows that inflation continues to push severity higher as carriers take rate in response.