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.

Source. Commercial Lines Insurance Pricing Survey (CLIPS) Survey conducted by Towers Watson
Source. Commercial Lines Insurance Pricing Survey (CLIPS) Survey conducted by Towers Watson

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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