Commercial Auto Woes & a Report from the NAIC

The hard market has been hard on commercial auto insurers. Rate increases, dropping profits and losses in underwriting have taken its toll. The 2022 AM Best report on the commercial auto insurance market found the line losing $3.3 billion in underwriting.

That meant rate increases of 8% at the beginning of 2023.

Adding to the problems for companies needing commercial auto insurance is their inability to find drivers. The insurance advisor CBIZ said there are currently 64,000 commercial driving positions open in the U.S. Expectations are that it will end up peaking at about 82,000 by year’s end.

This, along with a huge increase in the demand for the movement of commercial goods, has led to big trouble for this part of the nation’s transportation sector. So companies — in attempt to lure drivers to their cause — have lowered their driving standards.

Another issue is nuclear verdicts in crash claims and other incidents. CBIZ says those verdicts have gone up 50% a year for the last decade. Auto accidents got a quarter of the verdicts and they average $33.8 million per incident.

The price of auto parts and vehicle repairs have gone up, too. They rose 23% between 2022 and 2023. Better technology in vehicles is expensive, auto part demand is up and supplies are low because of supply chain issues and shortages of drivers to get those parts to suppliers.

Still, some insurance companies are doing okay with their commercial auto lines. These are the top 10 commercial auto insurers according to the National Association of Insurance Commissioners.

1. Progressive

Direct written premiums: $9,716,926,679

Direct premiums earned: $9,553,317,571

Market share: 15.18%

2. Travelers

Direct written premiums: $3,441,405,342

Direct premiums earned: $3,305,589,457

Market share: 4.38%

3. Liberty Mutual

Direct written premiums: $2,716,060,083

Direct premiums earned: $2,552,748,710

Market share: 4.24%

4. Old Republic

Direct written premiums: $2,502,163,209

Direct premiums earned: $2,347,729

Market share: 3.91%

5. Zurich

Direct written premiums: $2,099,052,957

Direct premiums earned: $1,995,924,878

Market share: 3.28%

6. Berkshire Hathaway

Direct written premiums: $1,951,535,136

Direct premiums earned: $1,804,053,339

Market share: 3.05%

7. Auto-Owners Insurance

Direct written premiums: $1,843,846,507

Direct premiums earned: $1,716,764,366

Market share: 2.88%

8. State Farm

Direct written premiums: $1,674,411,299

Direct premiums earned: $1,415,340,424

Market share: 2.62%

9. W.R. Berkley

Direct written premiums: $1,362,619,305

Direct premiums earned: $1,292,128,633

Market share: 2.13%

10. Nationwide

Direct written premiums: $1,241,900,191

Direct premiums earned: $1,490,307,563

Market share: 1.94%

Source link: PropertyCasualty360.com — https://bit.ly/3UQUUsK

About PIA Western Alliance

The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


PIA WESTERN ALLIANCE VALUES OUR STERLING PARTNERS

More Industry News