Residual Mkt Burden Grows

Wednesday, June 13th, 2001 Auto Risk Management

Recent statistics show a sharp decline in market share for assigned auto risk pool mechanisms, but heavy losses still spell financial woes for auto insurers, a recent study concluded. In its latest findings, published in a reported entitled, "Residual Markets Automobile Insurance 1998," the Alliance of American Insurers said private passenger auto market share for residual markets fell to 2.1 percent from 2.5 percent in 1996--and further from as high as 4.0 percent reported in 1994. Residual market share for commercial auto in the same year was pegged at 2.3 percent. But news of an increased market capacity for private auto insurers may be overshadowed by heavy financial burdens in the residual markets, according to the Alliance.

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http://www.nationalunderwriter.com/archives/Pc_archive/2001/P05-07/P200119auto.asp

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