From Transport Topics.
The insurance underwriting industry continues to face financial uncertainty, characterized by historic underwriting losses for the transportation sector and rising insurance rates for motor carriers, insurance executives said during a virtual educational session at American Trucking Associations’ Management Conference & Exhibition.
“We are in very challenging times with respect to transportation,” said Ryan Erickson, executive vice president of McGriff Insurance Services, during the Oct. 21 session, noting that in 2019 the U.S. commercial transportation market recorded $4 billion in underwriting losses — the worst performance on record — which resulted in rate increases averaging 10% to 15% for motor carriers with favorable loss experience.
“The industry doesn’t do a very good job of segmenting, specifically transportation. As an underperformer, transportation is going to be negatively affected,” he said. “While we are still seeing insurance premiums increase dramatically, we’re still seeing the same results. Losses are outpacing insurance companies’ ability to capture rate. Until the industry can show profitability, we’re going to continue to see much of the same.”
See the complete article from Transport Topics online.
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