Commercial auto

For all the focus on the potential tail risks from Covid-19, the most probable outcome is a period of benign frequency allowing carriers to catch up to trend, altering the near-term industry paradigm.

Following decades of significant market share growth, Progressive faces increasingly cost-efficient competition from large carriers, while its new TAM places the firm in a competitive agency channels.

What can go wrong? Lower yields. Market-linked income under pressure. Rising loss costs. Mean reversion in personal auto and workers’ comp. Welcome to 2020?

Warren Buffett’s conglomerate reported ludicrous headline net earnings, but with a less healthy story in insurance with lower favorable development and notable deterioration of results at Geico.

On Wednesday, Progressive reported somewhat disappointing earnings for September, including significant deterioration in its commercial auto results.

Farmers Insurance reviews its options, while Allstate predicts a potential expansion of partnerships of transport network companies.

Data tools could help the carrier boost profitability for the line, which has been under significant strain across the market.

James River also expects a pre-tax adverse development of $55mn to $60mn for the 2016 and 2017 underwriting years.

XPT describes the business written as “the best of the high-risk accounts”.

Progressive’s monster growth in Commercial Auto is becoming harder to ignore as a contributing factor to market-wide dynamics.

Corrective pricing action is moving commercial auto unit in the right direction, but more is still to be done, the executive said.

Catastrophes in 2019 neared the attachment point of the carrier’s Skyline Re cat bond.