A.M. BestTV: Commercial Automobile Insurance Sector Still Hindering Overall U.S. Property/Casualty Profitability

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- In this ^A.M.BestTV episode, A.M. Best Senior Industry Analyst, Industry Research & Analytics, David Blades examines why premium increases in the commercial automobile segment are not enough to offset the negative effects from underwriting losses. Click on http://www.ambest.com/v.asp?v=commercialauto117 to view the entire program.

Commercial automobile business has increasingly become a loss leader among U.S. property/casualty writers, which negatively affects quarterly and annual bottom-line results. Additionally, underwriting losses in 2015 marked the sector’s worse performance in five years.

“The recent report on commercial automobiles shows modest net premium growth over the past 10 years,” said Blades. “However, some of the other performance indicators, such as combined ratio results, have not done as well. The main reason for deteriorating results has not been underwriting losses, which have been growing, but incurred losses that have outpaced net premium written growth for commercial automobile insurers.”

Blades also spoke about what the industry is doing to reverse the negative performance trends.

“It is believed throughout the industry that the commercial automobile line has been under -priced for a number of years. As a result, commercial insurers are really trying to focus on underwriting fundamentals and increasing the average rates to get the pricing more adequate, and to stem the tide of these underwriting losses.”

To read this entire special report, titled, “Deteriorating Commercial Automobile Performance Continues To Hinder Profitability of Overall Property/Casualty Market,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=256824.

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.^A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View ^A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.