For the line to return to profitability, according to the report, companies will need to do a better job with their initial assessments of costs per claim, given that automobile repair costs continue to rise, as well as severity, owing to more frequent attorney involvement in claims.
Insurers also must embrace technologies like telematics, and enhancing their rate, underwriting and claims-settling practices.
AM Best, which maintains a negative market segment outlook on the commercial automobile insurance segment, will continue to monitor the performance of the commercial automobile insurers as shelter-in-place restrictions relax.
To access the full copy of this market segment report, click here.
To view a video discussion on this report with Sridhar Manyem, director, industry research and analytics, and Samuel Hanig, senior industry analyst, both of AM Best, click here.
Source: AM Best