https://coverager.com/geicos-2022-results/sample quote
During 2022, GEICO experienced a reduction of 1.7 million voluntary policies-in-force after flat year-over-year growth from 2020 to 2021. According to the most recently published A.M. Best data for 2021, the five largest automobile insurers had a combined market share in 2021 of approximately 60.5% based on written premiums, with GEICO’s market share being the second largest at approximately 14.4%. GEICO’s management estimates its current market share is approximately 13.9%.
In 2022, GEICO had a pre-tax underwriting loss of $1.88 billion, compared to a ~$1.26 billion profit in 2021.
Combined ratio went from 96.7% in 2021 to 104.8% in 2022. Losses in 2022 reflected significant increases in average claims severities, primarily due to significant cost inflation in property and physical damage claims, which began to accelerate in the second half of 2021 and have continued through 2022. Increases in used car prices produced increased claims severities on total losses and shortages of car parts contributed to elevated claims severities on partial losses. In addition, injury claims severities continued to trend higher in 2022.
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GEICO has successfully obtained premium rate increase approvals from certain states in response to the significant claims costs increases it has experienced in recent years. As a result, it expects to generate an underwriting profit in 2023.
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One wild thought based on the “hot topic” of this past year:
Did GEICO buy new AI software, try it out, and decide AI can indeed allow them to get rid of some percentage of their “number crunching” human beings?
