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Commercial Auto Progress Uneven: Premiums Grow, So Do Losses

The Insurance Services Office, Inc.’s analysis of recent developments confirms a progressive firming of commercial auto insurance rates in the U.S. property-casualty market, but it’s too early to break out the champagne.

The recent health of the commercial auto insurance market might cause insurers to wait a while before celebrating. Consider:

The industry’s combined ratio for commercial auto liability and physical damage was 115.7 in 2000. That is, insurers lost almost 16 cents on every dollar in premium for commercial auto, before taking investment gains into account.

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