Current Table

Private Passenger Auto Insurance Industry Underwriting Expenses, 2019 (1)

 

Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 75.5%
    Incurred losses 64.6
    Defense and cost containment expenses incurred 2.8
    Adjusting and other expenses incurred 8.0
Operating expenses (3)  
Expense ratio 22.7%
    Net commissions and brokerage expenses incurred 8.6
    Taxes, licenses and fees 2.1
    Other acquisition and field supervision expenses incurred 7.3
    General expenses incurred 4.7
Dividends to policyholders (2) 0.6%
Combined ratio after dividends (4) 98.7%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($245.7 billion in 2019).
(3) As a percent of net premiums written ($247.7 billion in 2019).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

 
PRIVATE PASSENGER AUTO INSURANCE UNDERWRITING SNAPSHOT, 2010 (1)
Net premiums earned ($000) $158,649,806
Components of underwriting, as a percent
of net premiums earned
 
     Incurred losses  63.4%
     Loss adjustment expenses 12.1
     Total loss and loss adjustment expenses 75.5
     Commissions and brokerage expenses incurred 8.5
     Other underwriting expenses incurred 16.8
     Total underwriting expenses incurred 25.2
     Dividends to policyholders  0.6
     Investment gains on funds attributable to
     insurance transactions and other income
3.5
Combined ratio after dividends 101.0
Overall operating ratio (2) 97.5

(1) After reinsurance transactions.
(2) Combined ratio after dividends, minus investment gains on funds attributable to insurance transactions and other income. Calculated by the Insurance Information Institute, based on SNL data.

Source: SNL Financial LC.

 
PRIVATE PASSENGER AUTO INSURANCE UNDERWRITING SNAPSHOT, 2011 (1)
Net premiums earned ($000) $162,134,529
Components of underwriting As a percent of net
premiums earned
     Incurred losses  64.7%
     Loss adjustment expenses 12.1
     Total loss and loss adjustment expenses 76.8%
     Commissions and brokerage expenses incurred 7.9
     Other underwriting expenses incurred 17.2
     Total underwriting expenses incurred 25.0%
     Dividends to policyholders  0.4
     Investment gains on funds attributable to
     insurance transactions and other income
2.6
Combined ratio after dividends  102.3
Overall operating ratio (2) 99.7

(1) After reinsurance transactions.
(2) Combined ratio after dividends, minus investment gains on funds attributable to insurance transactions and other income. Calculated by the Insurance Information Institute, based on SNL Financial data.

Source: SNL Financial LC.

 
PRIVATE PASSENGER AUTO INSURANCE INDUSTRY UNDERWRITING EXPENSES, 2012 (1)
Expense Percent of premiums
LOSSES AND RELATED EXPENSES (2)  
Loss and loss adjustment expense (LAE) ratio 76.7%
    Incurred losses 64.1
    Defense and cost containment expenses incurred 2.8
    Adjusting and other expenses incurred 9.9
OPERATING EXPENSES (3)  
Expense ratio 24.8%
    Net commissions and brokerage expenses incurred 8.3
    Taxes, licenses and fees 2.3
    Other acquisition and field supervision expenses incurred 8.6
    General expenses incurred 5.6
DIVIDENDS TO POLICYHOLDERS (2) 0.5%
COMBINED RATIO AFTER DIVIDENDS (4) 102.0%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($165.8 billion in 2012).
(3) As of percent of net premiums written ($167.8 billion in 2012).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: SNL Financial LC.

 
PRIVATE PASSENGER AUTO INSURANCE INDUSTRY UNDERWRITING EXPENSES, 2013 (1)

 

Expense Percent of premiums
LOSSES AND RELATED EXPENSES (2)  
Loss and loss adjustment expense (LAE) ratio 76.1%
    Incurred losses 63.5
    Defense and cost containment expenses incurred 2.8
    Adjusting and other expenses incurred 9.8
OPERATING EXPENSES (3)  
Expense ratio 25.0%
    Net commissions and brokerage expenses incurred 8.2
    Taxes, licenses and fees 2.3
    Other acquisition and field supervision expenses incurred 8.8
    General expenses incurred 5.8
DIVIDENDS TO POLICYHOLDERS (2) 0.6%
COMBINED RATIO AFTER DIVIDENDS (4) 101.7%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($172.5 billion in 2013).
(3) As a percent of net premiums written ($174.9 billion in 2013).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: SNL Financial LC.

 
PRIVATE PASSENGER AUTO INSURANCE INDUSTRY UNDERWRITING EXPENSES, 2014 (1)

 

Expense Percent of premiums
LOSSES AND RELATED EXPENSES (2)  
Loss and loss adjustment expense (LAE) ratio 77.4%
    Incurred losses 65.0
    Defense and cost containment expenses incurred 2.8
    Adjusting and other expenses incurred 9.6
OPERATING EXPENSES (3)  
Expense ratio 24.5%
    Net commissions and brokerage expenses incurred 8.9
    Taxes, licenses and fees 2.2
    Other acquisition and field supervision expenses incurred 8.1
    General expenses incurred 5.3
DIVIDENDS TO POLICYHOLDERS (2) 0.5%
COMBINED RATIO AFTER DIVIDENDS (4) 102.4%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($180.6 billion in 2014).
(3) As a percent of net premiums written ($183.4 billion in 2014).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: SNL Financial LC.

 
Private Passenger Auto Insurance Industry Underwriting Expenses, 2015 (1)

 

Expense Percent of premiums
Losses And Related Expenses (2)  
Loss and loss adjustment expense (LAE) ratio 79.8%
    Incurred losses 67.5
    Defense and cost containment expenses incurred 2.7
    Adjusting and other expenses incurred 9.6
Operating Expenses (3)  
Expense ratio 24.3%
    Net commissions and brokerage expenses incurred 8.9
    Taxes, licenses and fees 2.1
    Other acquisition and field supervision expenses incurred 7.9
    General expenses incurred 5.3
Dividends To Policyholders (2) 0.5%
Combined Ratio After Dividends (4) 104.6%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($189.2 billion in 2015).
(3) As a percent of net premiums written ($192.8 billion in 2015).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

 
Private Passenger Auto Insurance Industry Underwriting Expenses, 2016 (1)

 

Expense Percent of
premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 82.4%
    Incurred losses 70.3
    Defense and cost containment expenses incurred 2.6
    Adjusting and other expenses incurred 9.5
Operating expenses (3)  
Expense ratio 23.4%
    Net commissions and brokerage expenses incurred 8.7
    Taxes, licenses and fees 2.1
    Other acquisition and field supervision expenses incurred 7.5
    General expenses incurred 5.1
Dividends to policyholders (2) 0.4%
Combined ratio after dividends (4) 106.3%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($204.8 billion in 2016).
(3) As a percent of net premiums written ($207.4 billion in 2016).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

 
Private Passenger Auto Insurance Industry Underwriting Expenses, 2017 (1)

 

Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 79.5%
    Incurred losses 67.9
    Defense and cost containment expenses incurred 2.6
    Adjusting and other expenses incurred 9.0
Operating expenses (3)  
Expense ratio 22.8%
    Net commissions and brokerage expenses incurred 8.5
    Taxes, licenses and fees 2.1
    Other acquisition and field supervision expenses incurred 7.2
    General expenses incurred 5.0
Dividends to policyholders (2) 0.4%
Combined ratio after dividends (4) 102.7%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($217.4 billion in 2017).
(3) As a percent of net premiums written ($222.2 billion in 2017).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

 
Private Passenger Auto Insurance Industry Losses And Underwriting Expenses, 2018 (1)

 

Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 74.5%
    Incurred losses 63.6
    Defense and cost containment expenses incurred 2.7
    Adjusting and other expenses incurred 8.3
Operating expenses (3)  
Expense ratio 22.8%
    Net commissions and brokerage expenses incurred 8.8
    Taxes, licenses and fees 2.1
    Other acquisition and field supervision expenses incurred 7.2
    General expenses incurred 4.7
Dividends to policyholders (2) 0.5%
Combined ratio after dividends (4) 97.8%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($236.6 billion in 2018).
(3) As a percent of net premiums written ($240.9 billion in 2018).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: NAIC data, sourced from S&P Global Market Intelligence.