Assessment Agency A.M. Best & Co. said on Tuesday that it maintains a negative view of the commercial auto insurance sector after the line's ninth straight year with an over 100% combined ratio.
A.M. Best said in his market segment report that commercial car "continues to face challenges on many fronts: nuclear judgments, distracted driving, insufficient driver safety, other frequency and severity challenges, or just being slow to adapt to current technology and modeling innovations. widespread within the personal auto line. ”
The 2019 insurance loss sector of $ 3.95 billion was the worst in ten years, and the combined ratio was acquired at 109.4% from 108.0% in 201
Since 2016, the entire car sector has seen a speed increase of at least 5%, based on data from AM Best & # 39; s State Rate Filings.
Progressive Insurance Group is the largest commercial auto insurer through direct premium written, after a tt has seen a 26.6% year-on-year increase to nearly $ 5.58 billion in direct-written contributions. Travelers Group finished second with almost $ 2.80 billion in direct premiums, up 9.1%. Liberty Mutual Insurance Cos., With nearly $ 1.89 billion, rose 5.0%.
The top 15 insurers accounted for 53.6% of the market share of net premium in 2019, A.M. Best of all.
"The combined conditions for all but one (Progressive) of the 15 top commercial car writers [by net premium written] are worse for commercial cars than for all lines combined. Only Progressive and Allstate have combined ratios lower than 100, ”A.M. Best to illustrate the challenges facing the sector.
"Nuclear power disasters have wreaked havoc on the profitability of the truck industry in particular," A.M. Best of all. It defines a "nuclear power judgment" as one of $ 5 million or higher.
A.M. Best cited the case Countrywide RV Transport, which terminated its business in 2019.
“The company was prosecuted in a civil legal process where a driver who fell asleep at the wheel and killed a husband and wife. The jury awarded the victim's children $ 26.6 million in an illegal use of death, after which the company had to shut down the business, "A.M. Best of all.
In another example cited by the credit rating agency from 2019, Werner Enterprises struck with a $ 40.5 million verdict for an accident in 2017 where the new driver of a tractor-trailer crossed four lanes and a concrete median, hitting a vehicle head on whose driver was pronounced dead at the scene.
The Covid-19 outbreak has had some effect on truck operations, AM Best noted.
The US Highway Policy Office stated that travel on all roads and streets in the country decreased by 18.6%, or $ 50.6 billion less vehicle environments, in March 2020 compared to March 2019, "a significant reduction in total traffic , ”AM Best of all.