{"id":235,"date":"2025-09-22T17:30:00","date_gmt":"2025-09-22T15:30:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=6880c459429c17158a53e60ddcc344e5"},"modified":"2025-09-22T17:30:00","modified_gmt":"2025-09-22T15:30:00","slug":"bests-market-segment-report-us-commercial-auto-insurance-segment-stuck-in-reverse-as-losses-keep-mounting","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=235","title":{"rendered":"Best\u2019s Market Segment Report: US Commercial Auto Insurance Segment Stuck in Reverse As Losses Keep Mounting"},"content":{"rendered":"

OLDWICK, N.J.--(BUSINESS WIRE)--#insurance<\/a>--The U.S. commercial auto insurance line continues to burden the overall property and casualty (P\/C) industry, accounting for more than $10 billion in net underwriting losses over the past two years, according to a new AM Best<\/b> report.<\/p>

\nThe Best\u2019s Market Segment Report<\/i>, \u201cStuck in Reverse: Commercial Auto Losses Keep Mounting,\u201d states that the segment\u2019s rising loss severity, increasing claims costs and adverse prior-year loss reserve development continue to produce net calendar year underwriting losses for commercial auto insurers. The commercial auto insurance sector has now generated an underwriting loss for the 14th consecutive year. In fact, the losses are getting worse: total underwriting losses in 2024 were $4.9 billion dollars. Over the past 11 years, the average underwriting loss has been a little over $2.9 billion annually.<\/p><\/a><\/a>

\n\u201cOne bright spot to note is that during the past decade, insurers have trimmed about six percentage points off their underwriting expense ratio for commercial auto insurance,\u201d said Christopher Graham, senior industry analyst, AM Best. \u201cWhile commercial auto insurers are not recognized as often as personal auto insurers for adopting and leveraging technology through their operations, commercial auto insurers have nevertheless made some strides in improving their efficiency.\u201d<\/p>

\nAccording to the report, the difference between auto liability and physical damage results has been stark and diverging. The underwriting expense ratio is relatively similar for the two coverages, with both improving by approximately three percentage points of improvements compared with the expense ratios six to seven years ago. The difference in the net loss and loss adjustment expense (LAE) ratio for the coverage parts, however, has typically been significant and far higher for liability coverage. The distinction between compulsory liability coverage and optional physical damage coverage may lead to insureds finding physical damage coverage not worth the cost. \u201cEven if insureds find benefits in physical damage coverage, they may opt for higher deductibles to pay less for coverage,\u201d Graham said.<\/p>

\nThe report also notes that despite significant rate increases, commercial auto insurers have not been able to offset rising loss severity driven by inflation, rising replacement costs due to technological advancements and rising labor costs related to repairs. \u201cAdverse loss development has been a constant drain on commercial auto results and is getting worse,\u201d said David Blades, associate director, AM Best.<\/p>

\nTo access the full copy of this market segment report, please visit http:\/\/www3.ambest.com\/bestweek\/purchase.asp?record_code=358186<\/a>.<\/p>

\nAM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com<\/a>.<\/b><\/p>

\nCopyright \u00a9 2025 by A.M. Best Rating Services, Inc. and\/or its affiliates. ALL RIGHTS RESERVED.<\/b><\/p> Contacts<\/b>

\nChristopher Graham<\/b>Senior Industry Analyst,<\/b>Industry Research and Analytics<\/b>+1 908 882 1807<\/b>christopher.graham@ambest.com<\/a>\nDavid Blades<\/b>Associate Director,<\/b>Industry Research and Analytics<\/b>+1 908 882 1659<\/b>david.blades@ambest.com<\/a>\nChristopher Sharkey<\/b>Associate Director, Public Relations<\/b>+1 908 882 2310<\/b>christopher.sharkey@ambest.com<\/a>\nAl Slavin<\/b>Senior Public Relations Specialist<\/b>+1 908 882 2318<\/b>al.slavin@ambest.com<\/a><\/p>","protected":false},"excerpt":{"rendered":"

OLDWICK, N.J.–(BUSINESS WIRE)–#insurance–The U.S. commercial auto insurance line continues to burden the overall property and casualty (P\/C) industry, accounting for more than $10 billion in net underwriting losses over the past two years, according…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-235","post","type-post","status-publish","format-standard","hentry","category-infos-businesswire"],"_links":{"self":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/235","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=235"}],"version-history":[{"count":1,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/235\/revisions"}],"predecessor-version":[{"id":236,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/235\/revisions\/236"}],"wp:attachment":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}