Automobile Insurance is a big player in the U.S P&C industry. Its premium exceeds $200 billion dollars annually according to the National Association of Insurance Commissioners; and a small segment of it belongs to commercial automobile with a little bit over $25 billion of premiums reported by NAIC in April 2013
As of today, Travelers Group leads the marketplace with $2.01 billion dollars in written premium with a 7.98% of market share, followed by Progressive and Liberty Mutual.
In terms of loss ratio, commercial auto averages 68% ($13 billion dollars) in comparison to private auto, which is averaging 71% ($106 billion dollars) per year.
When we talk about insurance rate, the Commercial Lines Insurance Pricing Survey (CLIPS) performed by Towers Watson; reports and aggregate increase of 6% during the second quarter of 2013; which is consistent with the last five quarters.
Underwriting losses that started since early 2009 caused this rate increase, in addition to paying losses at a significantly faster rate.
The future of commercial auto
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