You’ve probably noticed your insurance is costing you a little more. According to an industry survey conducted by The Council of Insurance Agents and Brokers, commercial auto insurance rates rose 3.6 percent in the first quarter of 2016. By contrast, overall rates in the commercial property and casualty sector fell 3.7 percent on average in the first quarter, per CIAB data.
The commercial auto insurance sector has had a series of tough years. Via Business Insurance, the industry suffered a collective underwriting loss last year, the fifth straight year it hasn’t shown a profit. One reason the industry has struggled has been a “recent extended period of heightened claims severity, particularly relating to bodily injury claims,” said James Auden, the managing director of Fitch Ratings, per Business Insurance.
With an increase in claims can come a worse loss experience — meaning lower profits or even losses — for the insurer. It’s only logical, then, that the result would be a commercial auto insurance rate hike.
And when presented with a commercial auto rate hike, it helps to have a diligent, experienced insurance broker on your side — a client advocate who can work toward a positive resolution.
In a climate where auto rates are rising and gas prices have only recently begun to rise, there is ample reason for companies to be keeping an eye on how they can manage their commercial auto rates. Certainly, hiring skilled drivers and training them well is essential. But having an insurance broker focused on strategic risk mitigation solutions is vital, too.
The Plexus Groupe possesses a wealth of property and casualty expertise. We tailor risk management solutions to your business, and we take a client-focused approach to all we do. For more information, contact a Plexus property and casualty client executive at 847-307-6100, or contact us via the Web.