Accurate risk selection is the heartbeat of profitability. According to Insurance Journal, for the second year in a row, the U.S. property & casualty industry booked an underwriting loss of more than $20 billion – primarily due to the lackluster performance of personal auto and home insurance lines. Outdated underwriting, limited insights, and a lack of policy monitoring are dragging many carriers into this costly spiral. Poor risk selection doesn’t just dent profits – it creates a chain reaction that impacts claims, customer loyalty, and market position.
This is a negative trend that carriers simply can’t afford. Breaking the cycle means rethinking risk management altogether. Continuous monitoring and real-time data need to replace outdated underwriting and “set it and forget it” policy management. The focus must shift to proactive, ongoing risk assessment that allows carriers to make a course correction before renewal.
In the end, it’s about seeing risk management as a dynamic process throughout the Policy Lifecycle that reduces risks and improves policyholder trust.
