What’s Wrong With Commercial Auto?
Tuesday, March 9th, 2021 AutoCommercial auto is one of the biggest, most problematic cost centers in the insurance industry. Its loss ratios are incredibly high — and growing — particularly in comparison with other P&C lines.
Carriers struggle to make money on the line, and they frequently incur fairly substantial losses.
With fewer claims than most other lines, why is commercial auto such a problem?
Because claims are much larger; carriers may be looking at paying out $200,000 vs. $20,000 on different types.
Let’s examine the issues and see how we can turn commercial auto into a revenue generator instead of a black hole.
External References & Further Reading
https://www.insurancethoughtleadership.com/whats-wrong-with-commercial-auto/
