Michael Zurinsky's questions to Selective Insurance Group Inc (SIGI) leadership • Q4 2024
Question
Speaking for Michael Zurinsky, an analyst asked if Selective's quarterly review process structurally leads to smaller, sequential reserve charges and questioned the confidence that General Liability issues would not spread to Commercial Auto.
Answer
John J. Marchioni, Chairman, President & CEO, defended the quarterly process, citing historical data showing its effectiveness versus the industry and its benefit in enabling quick pricing and underwriting responses. Both Marchioni and Patrick Brennan, EVP & CFO, asserted that Commercial Auto was the 'first shoe to drop' regarding social inflation, not the next. Marchioni elaborated that Commercial Auto's shorter tail led to earlier recognition and reaction with higher loss trends and pricing adjustments in prior years.