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The chalkboard recently did a piece on the “highs and lows of Commercial Auto’s combined ratio”. Here’s what they discovered…

118.1 —> The soft market of the 1990s that persisted into the early 2000s saw combined ratios well over 100 for Commercial AutoRising As High As 118.1 In 1999.

92.1 —> In the hard market that followed, tighter underwriting led to a sharp drop in the Commercial Auto combined ratio, down as low as 92.1 in 2005. The industry achieved combined ratios under 100 from 2003 through 2010. 


Competition Along With Rising Claim Severity Drove The Combined Ratio Ove100 in 2011, to 103.4. It Would Rise As High As 106.8 Between 2011 and 2014.

^Rising rates^ —> Insurers have adjusted to these trends by raising rates: AUTO LIABILITY WAS UP 2.2% ON AVERAGE DURING Q4 2015 with the steepest increases seen in trucking risks and non-trucking risks with large fleets. 

Flat to + 10% —> Going forward, rates are expected to continue their upward trend with Willis Towers Watson’s price prediction coming in at FLAT TO UP BY 10%

SAFETY FIRST —> As loss ratios deteriorate, INSUREDS SHOULD EXPECT HIGHER RATES, but risks implementing driver safety programs, telematics and other loss control techniques will likely fare better with insurers.