One reason for the recent decline in the expense ratio for PC insurers is an increased dependence on independent brokers to sell and distribute insurance policies.

Question

Quizplus · Accepted Answer

The decline in the expense ratio for PC insurers is more likely due to increased efficiency and cost-cutting measures, such as technology adoption, rather than increased dependence on independent brokers, which typically increases distribution costs.

One Reason for the Recent Decline in the Expense Ratio