In response to rising cost pressures, auto insurers saw underwriting results deteriorate, prompting significant adjustments to pricing strategies. “(Auto insurance providers) sought and received approval to raise rates. So, you’ve had several years of back-to-back, in some cases double-digit, rate increases. It culminated in 2024, with underwriting results showing a big improvement as a result of that dynamic over the last five years,” said Catherine Seifert, director of research at the Center for Financial Research and Analysis and a seasoned insurance industry analyst, in an interview with IBA. In January 2025, a key renewal period, auto premium costs experienced a modest pullback, as increased consumer demand made the line more competitive, she added.
