Best’s News & Research Service - February 16, 2018 08:05 AM (EST)
A.M. BestTV: Personal Automobile Writers See Improvements Through Third Quarter 2017
- February 16, 2018 08:05 AM (EST)
Oldwick //BestWire// - In this A.M.BestTV episode, Bobby Skrabal, industry analyst, A.M. Best, said results through the third quarter of 2017 improved for a range of personal automobile writers, including companies that make up A.M. Best’s personal automobile composite. Click on http://www.ambest.com/v.asp?v=personalauto218 to view the entire program.
In a recent Best’s Market Segment Report, it states that in recent years, personal automobile writers have seen loss experience deteriorate.
“The combined ratio for personal automobiles has been climbing over the past decade. With the economy recovering from the recession, unemployment improving and gas prices decreasing, all have led to more cars being on the roads and higher claims frequency,” said Skrabal.
Skrabal also highlighted the increase in claim severity and cited several drivers: distracted driving from increased usage of smartphones, severe weather events, the legalization of marijuana and cars being built with more advanced technological features.
Additionally, Skrabal stated that, “Medical costs have increased significantly in recent years. This increase in severity, along with adverse reserve development in 2015 and 2016, has led to a large deterioration in both years’ combined ratios for the personal automobile line.”
To access a copy of this market segment report, titled, “Personal Auto Showing Signs of Improvement,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=269661 .
Recent episodes of A.M.BestTV include:
- Underpricing Catches Up With Some Commercial Automobile Writers: David Blades, senior industry analyst, and Charlie Smentkowski, financial analyst, both at A.M. Best, discuss a new report on the U.S. commercial automobile segment, including how some writers are bolstering reserves to address prior pricing shortfalls: http://www.ambest.com/v.asp?v=commercialauto218 .
- When Building Up Talent, Think Beyond Labels, Says CEO Beale: Inga Beale, chief executive officer at Lloyd’s, explains the Dive In Initiative and how organizations can recruit the best and brightest by promoting inclusion: http://www.ambest.com/v.asp?v=beale218 .
- Artificial Intelligence Should Enhance Advice-Givers’ Skills, Says CEO Glaser: Dan Glaser, president and chief executive officer at Marsh & McLennan Companies, said advancing technology should aid brokers and insurers, but could have a range of unforeseen impacts. Click on http://www.ambest.com/v.asp?v=dglaser218 .
- Infrastructure Boom Would Aid Many Smaller Surety Writers, Say A.M. Best Senior Analysts: A.M. Best’s Senior Financial Analyst Robert Valenta and Senior Research Analyst David Blades review a new report that examines the growth of the U.S. surety insurance segment and the forces shaping it: http://www.ambest.com/v.asp?v=surety218 .
A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html . View A.M.BestTV episodes at http://www.ambest.tv.
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