For the seventh consecutive year, commercial auto is losing money. Despite rate increases in 23 of the last 25 quarters, the combined ratio topped 111 percent in 2017. The line has been a weak spot for many insurers, forcing them to reduce writings, trim their portfolio and—in some cases—exit writing monoline auto altogether.

While these traditional approaches have had some impact, they have fallen far short of turning this line around. For one, they work from the assumption that the problem lies mainly on the front end, in underwriting. Our studies show that there are pockets of opportunity across the enterprise when you look at the business from end to end.

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