Business auto insurance profitability is yet to come: S&P

U.S. commercial auto insurers face jolts and disruptions on their path to profitability due to inflation and the uneven post-pandemic economic recovery.

According to a report by Standard & Poor’s Global Ratings, the industry took a hiatus in 2020 as COVID-19 restrictions resulted in a significant reduction in driving, which was particularly compelling in the area of ​​commercial auto insurance. . That year, the number of fatal crashes involving large trucks and buses fell nearly 13 percent to 4,565 deaths. Non-fatal accidents in space plunged 14% to 156,707, according to statistics from the National Highway Traffic Safety Administration.

Now, however, the economy is picking up and more commercial, as well as personal) motorists are back on the road. S&P Global Ratings predicts that more miles driven, along with inflation, supply shortages, a lack of experienced pilots and rising legal costs will delay any positive momentum for the industry, at least in the short term.

Truck crashes are typically caused by driving errors such as violating speed limits, distracted driving, fatigue, mechanical breakdowns and poor road conditions, S&P said.

“We believe that underwriting profits for commercial auto insurers are likely to remain elusive as the economy opens up again,” S&P said.

The full report is “Commercial auto insurers face a long road to profitability as the US economy reopens and faces shortages.”

Source: Standard & Poor’s.

The subjects
Business insurance for automotive companies