What’s Wrong With Commercial Auto?

Commercial 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.