Macroeconomic trends are challenging commercial auto insurers

 

6.2 percent higher graphic
Miles driven were 6.2 percent higher in March 2018 compared with March 2013.

51000 new drivers graphic
Distribution needs call for 51,000 more drivers, which will create a huge inexperienced driver population with little required training.

40% higher graphic
Loss severity per claim is up 40 percent from 2009 to 2017, worsened by new technology and distracted driving.

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Automation, accuracy, and increased throughput for decisions supporting risk rating and underwriting.

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Losses outpacing premiums

Even though premiums are up, so are claims frequency and severity, resulting in commercial auto underwriting losses outpacing premiums by $11.9 billion from 2012 to 2017.

*Source: AM Best data and ISO analysis, June 2018

The path to profitability requires a targeted approach

While some combined ratios are topping 100 percent, profitable insurers have achieved a better combined ratio 13.5 points lower than the total industry for the years 2012–2017.

You need a defined market approach to achieve better combined ratios and reduce losses. Verisk's three-part solution can help guide you along the path to profitability.

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Risk targeting and segmentation

The path to profitability starts with data and analytics that properly drive risk selection.


Risk selection, pricing, and underwriting

You need reliable information on vehicles and drivers to underwrite commercial auto and policies properly.


Portfolio monitoring

Keep your book of business profitable by keeping current.