Morgan Stanley says auto insurance rates fell 0.2% in July

Investing.com -- Auto insurance rate filings showed a 0.2% decrease in July, according to Morgan Stanley analysis. The decline affected approximately $61 billion in auto premiums across the property and casualty insurance industry.

Morgan Stanley expects auto pricing to remain negative through 2026 as carriers prioritize new business growth and customer retention amid intense competition in the personal auto insurance market.

Progressive Corp saw a 1.3% premium-weighted rate decrease in July, affecting $12.7 billion in auto premiums. The firm anticipates additional negative rate filings from Progressive for the remainder of the year as management focuses on maximizing personal auto growth and retention.

Allstate Corp recorded a 0.9% rate increase in July, impacting roughly $4.6 billion in auto premiums. Morgan Stanley expects continued negative auto rate filings from Allstate in 2026 as the company works to write more new auto business in most states and improve retention through its Transformative Growth initiative and rollout of Allstate-branded Affordable, Simple, Connected products.

Hartford Financial Services Group posted a 0.3% rate increase in July, affecting approximately $70 million in auto premiums. With target profitability margins reached for Hartford's Personal Insurance segment, Morgan Stanley expects rates to moderate further as the company expands its Prevail platform.

Travelers Companies recorded a 1.1% rate increase in July, impacting $1.2 billion in auto premiums. Morgan Stanley anticipates further moderation in personal auto pricing from Travelers as the company deploys capacity to support bundled auto and homeowners business.

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