Commercial auto insurers report worst losses in decade

From Insurance Journal.

The U.S. commercial automobile insurance segment’s underwriting losses deepened to $4.0 billion in 2019, the segment’s worst loss in 10 years and a continuation of a decade-long trend of worsening underwriting results, according to a new AM Best report.

Indeed, the U.S. commercial automobile insurance line of business has not generated a combined ratio under 100 since 2010, said the report, titled, “U.S. Commercial Auto Writers: Profitability Remains Elusive.” (Combined ratios above 100% indicate an underwriting loss).

The segment’s combined ratio deteriorated by 1.4 percentage points in 2019 to 109.4, driven by a nearly 2.0 percentage-point increase in incurred losses and loss adjustment expense (LAE) ratio, the report continued.

AM Best confirmed that calendar year 2019 marked the eighth consecutive year in which the commercial auto line’s combined ratio was materially higher than that of either the commercial lines or the P/C industry in its entirety.

See the complete article from Insurance Journal online.

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