Profit and Rate Adequacy Review

The Profit and Rate Adequacy Review is a new undertaking of the Board designed to capture valuable information regarding the financial health of the automobile insurance industry to help identify possible areas of concern. It will be conducted on an annual basis moving forward and will include the following objectives:

• review of historic premiums, average loss amounts and written vehicle growth;
• review of historic profit levels earned;
• comparison of required average premium and actual average premium charged; and
• assessment of the current level of rate adequacy.

Readers of the Profit and Rate Adequacy Review should consider that the analysis is based on averages and aggregated industry data and does not apply to any individual insurer. The findings are a hindsight review of the experience that has emerged in the industry and are not meant to suggest that insurance companies intended to achieve the results realized. The scope of the review is currently limited to private passenger automobile business only.

NL Profit and Rate Adequacy Review - PPA Data Through December 31, 2022