Moody's said the outlook for the U.S. property and casualty personal insurance industry is stable for 2018 as strong capital base and adequate earnings capacity will help insurers absorb losses from 2017 hurricanes and wildfires.
For personal auto insurers, the rating agency forecasts better auto underwriting results in 2018 because of higher rates and more favorable frequency trends.
Moody's sees no general market disruption for the homeowners insurance market. But it expects rate increases in the high-single digits for homeowners' policies that experienced catastrophe losses as companies tackle higher building costs in a "tight" construction labor market and rising reinsurance costs. For other homeowners business away from catastrophe zones, the rating agency projects rate hikes in the low-single digits.