Commercial Auto insurers face an environment of continuing challenges

I found a rather interesting read published by Zurich NA in August 2021.

“Rate Fatigue” refers to insurance premiums rising just like some many prices in 2021-2022.

Alex Wells, Head of the Zurich NA says…

“For the better part of a decade, the Commercial Auto line has been affected by a confluence of factors that have severely impacted insurers’ profitability. A recent Conning, Inc. report noted that the industry’s Commercial Auto combined ratio has averaged a troubling 107 since 2010. The same report states that from 2011 to 2019, Commercial Auto has accounted for $22.4 billion in underwriting losses for the industry, $16.3 billion of which came from just the last five years of that report (2015-2019).1 “ 

So many new things have impacted the cost of Auto Insurance: The IPhone was released in 2006, 2007 US hits a financial crisis, 2012 CO & WA state allow cannabis for recreational use, 2014 lower gas prices spur higher use of vehicles, 2016 Higher cost of auto repair & new technology, ATA estimates a loss of 61,000 skilled drivers on 2018.

I wonder after the COVID 2019 pandemic with UBER, Lyft & so many delivery services exploding will bring to the experience ratio.

BestHire recommends obtaining employee driving records regularly  to stay away & stay diligent.

Carl Slicer, www.BestHire.com,  CSlicer@BestHire.com

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