Commercial Auto Insurance Trends in 2018
Over the past few years, commercial auto losses have created challenges for businesses with fleet exposures. In 2016, the combined ratio for commercial auto reached a 15-year high of 110.4 percent according to Fitch Ratings. Here, we’ll look at key trends in what’s behind the losses and actions commercial auto policyholders can take to better manage on-the-road risks.
An uptick in commercial auto claims costs stems from both claim frequency and severity. Key factors driving these increases include:
Key drivers in claim frequency
An improved economy, advancements in technology, and changing social trends are introducing risks that increase the frequency of accidents and claims. Some of these risks include:
- Distracted driving. Distracted driving, whether it’s from talking on a mobile phone or via a hands-free device, using an infotainment system or GPS, or eating or drinking, is a key factor in the growing number accidents on the road. In a recent report by the National Highway Traffic Safety Administration (NHTSA), 3,450 people were killed in vehicle crashes involving distracted drivers in 2016.