2024 Commercial Auto Insurance Market Outlook

Posted January 05, 2024

The commercial auto insurance market has faced hardening conditions for much of the past decade, as evidenced by plummeting profitability and continued rate hikes. Although 2022 saw lower average premium increases due to strengthening reserves and 2021’s combined ratio falling below 100 for the first time in years, this deceleration wasn’t here to stay. After the combined ratio jumped back up to 105 in 2022, industry data revealed that most policyholders experienced premium increases near or above double digits by the latter half of 2023. Various factors have led to such conditions, including widespread driver shortages, nuclear verdict concerns and inflation issues. Considering these developments, most insureds can expect ongoing premium hikes going into 2024. Policyholders with sizeable fleets or poor loss history may face double-digit rate jumps and possible coverage restrictions.

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