Fitch: U.S. P/C Industry Loss Reserves Remain Adequate

U.S. property and casualty insurance reserves remain adequate, although projected deficiencies remain for workers' compensation and commercial auto liability segments, Fitch Ratings concluded in a special report released last week. Loss reserves are the largest liability on insurers’ balance sheets and a key source of potential capital volatility. Barring a meaningful upward shift in key loss cost drivers, including general inflation, medical expenses and litigation costs, a turn toward reserve deficiencies is unlikely, Fitch Managing Director Jim Auden said in a news release. ...