For most U.S. property and casualty (P&C) insurance companies, automobile liability (auto liability) line performance has typically been one of the major factors adversely impacting overall profitability in recent years. Since the economic crisis of 2008, combined ratios for the auto liability line have steadily deteriorated, putting pressure on carriers to advance strategies to reverse this trend. These strategies need to be developed in order to address the major components that negatively impact auto liability loss ratios – inadequate rates for the risk assumed and marked increases in both frequency and severity of loss.
In order to develop viable strategies, increased utilization of data and analytics will be paramount. Though the captured data set for auto liability is growing exponentially, the ability of carriers to mine usable, strategic information from that data and then integrate it into underwriting, pricing and claims strategies is being strained to the limits.
Click here to read Guy Carpenter’s complete “Auto Liability Market Update & Loss Trends Analysis” and request Guy Carpenter’s latest Risk Benchmarks Report >>
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