These articles were published by Risk & Insurance.
Part 1
Commercial auto is a troubled segment of the property and casualty insurance market. Insurance companies have struggled to make a profit in recent years, and continue to find it difficult to control skyrocketing claim costs. Poor underwriting results have led to significant rate increases. Yet industry experts wonder if the large rate increases since 2018 are sufficient to keep up with the explosion in claim costs. In this first of a two-part feature posted on Oct. 23 on the Risk & Insurance website, we discuss the following:
- Commercial auto loss ratios
- How premium growth outpaces industry
- Third-party litigation funding
Part 2
In this second of a two-part feature posted on Oct. 23 on the Risk & Insurance website, we continue our discussion on third-party litigation funding (TPLF) and its impact on commercial auto industry. The TPLF industry is estimated to be worth approximately $39 billion worldwide. TPLF’s in fact have gone “mainstream,” and have no indication of slowing down. In this article, we discuss the following:
- The TPLF Impact on the bottom line
- State of the trucking industry
- Increasing severity and nuclear verdicts
- Worsening reinsurance results
- Solutions to mitigate the adverse trends