Despite years of price increases in premium prices, the commercial automotive sector 's continues to see insurance losses, according to a report Monday by A.M. Best & Co.
Continued premium increases have not offset loss trends that continue to worsen, Best said Monday.
The Oldwick, New Jersey-based credit rating agency said that according to The Council of Insurance Agents & Brokers, commercial car insurers now have increased prices on average for 40 consecutive quarters since the third quarter of 2011.
During about the same period, from 2011 to 2020, commercial car insurers saw more than $ 22 billion in insurance losses, said Best.
Quarterly price changes ranged from 9.0% to 1
"Despite the more conservative price throughout most of the previous decade, the performance of commercial vehicles has not yet shown lasting improvement", showing
both the price adequacy of the line and that the increases in loss costs continue to outweigh the increases in pricing and insurance companies' gradual corrective insurance measures.
19659002] Especially insured with large fleets or a bad loss history
Progressive Insurance Group and Travelers Group lead market shares in the commercial car sector and are the only two with a market share of more than 5%, at. 12.7% and 6.2%, respectively.