Conning–Commercial Automobile Line Still Unprofitable Despite Carrier Efforts to Date

By a News Reporter-Staff News Editor at Insurance Weekly News -- The commercial automobile insurance line has been suffering for five years, and has yet to show significant improvement, despite insurer efforts, according to a new study by Conning.

"Underwriting results for the commercial automobile insurance market are the worst in the industry in recent years," said Jerry Theodorou, a Vice President, Insurance Research at Conning. "The downturn in performance that began in 2011 was abrupt, and was followed by rate increases, attempts at improved underwriting, and pullbacks from the line or its segments by major insurers. However, these actions have yet to result in significant improvements for the industry."

The Conning study, "HYPERLINK "http://app.bronto.com/t/l?ssid=10658&subscriber_id=buooofjlcellytjgnlbdacpdnuxlbid&delivery_id=bpxuwshlcewzvkosqmowfwnxgrgbbjl&td=B4zRQOUaIG1EoCzqHjrSpg8sIjd04-MBAsiD4IgDsRxMANEi1SKivZ5oSlA0RmrMabe5g4TKLP040nOENPsa2uFBR3FJhSej-pZVtx4lgHdsPdA-OeSg2TYWjOOSc4ZPvA5aHh7G93nkXAhn6iqZLbj8EpNOjdnB-zT3IghWKT5CwIzGH-p11UY8ZGxJR7HueGAVFwSR8xJkZWjCmkgt8m76Cs6Su1s6VjNVHITP8cQlOC1opje6BJfy2YOSTa0nuNy8_JBC1IvIu8CgIr4ZPxLYVWqCNoy2nG" nCommercial Automobile Insurance: Fix Me, Please" reviews the drivers of commercial automobile insurance's recent results, analyzes the issues that led to the troubled market performance, and explores what it will take to restore profitability to the line.

"While the commercial automobile insurance industry has suffered as a whole, the top quintile of large insurers outperformed the bottom by almost 30 points in combined ratio over the past decade," said Steve Webersen, Head of Insurance Research at Conning. "As we analyzed insurer performance metrics and market conditions, it became clear that despite the precipitate deterioration in performance, there were actually many factors that combined to overwhelm the line. Leading insurers have begun to undertake a variety of corrective approaches: from selective withdrawals of difficult market segments, to exploiting enhanced data sources and analytics and technologies, to rethinking rating basis, and more. Looking forward, success in commercial automobile insurance will clearly demand increased sophistication from insurers."

"HYPERLINK "http://app.bronto.com/t/l?ssid=10658&subscriber_id=buooofjlcellytjgnlbdacpdnuxlbid&delivery_id=bpxuwshlcewzvkosqmowfwnxgrgbbjl&td=B4zRQOUaIG1EoCzqHjrSpg8sIjd04-MBAsiD4IgDsRxMANEi1SKivZ5oSlA0RmrMabe5g4TKLP040nOENPsa2uFBR3FJhSej-pZVtx4lgHdsPdA-OeSg2TYWjOOSc4ZPvA5aHh7G93nkXAhn6iqZLbj8EpNOjdnB-zT3IghWKT5CwIzGH-p11UY8ZGxJR7HueGAVFwSR8xJkZWjCmkgt8m76Cs6Su1s6VjNVHITP8cQlOC1opje6BJfy2YOSTa0nuNy8_JBC1IvIu8CgIr4ZPxLYVWqCNoy2nG" nCommercial Automobile Insurance: Fix Me, Please" is available for purchase from Conning by calling (888) 707-1177 or by visiting HYPERLINK "http://www.conningresearch.com/" nwww.conningresearch.com.

Keywords for this news article include: Conning, Automobiles, Transportation, Insurance Companies.

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