You can’t always price right

Weak risk selection forces carriers to be pricing prophets. P&C Specialist reports on the amazing range of personal auto loss ratios being experienced by major carriers: From the mid-50s to the high 70s. It illustrates the challenge of relying primarily on pricing to drive profitability. Most carriers tend to average a very small underwriting profit which makes pricing decisions critical: overprice and you lose share, underprice and the losses explode. This is why better risk selection in detail is so critical. It gives you margin for error