OLDWICK, N.J.--(BUSINESS WIRE)--In this A.M.BestTV episode, Bobby Skrabal, industry analyst, A.M. Best, said results through the third quarter of 2017 improved for a range of personal automobile writers, including companies that make up A.M. Best's personal automobile composite. Click on http://www.ambest.com/v.asp?v=personalauto218 to view the entire program.
In a recent Best’s Market Segment Report, it states that in recent years, personal automobile writers have seen loss experience deteriorate.
“The combined ratio for personal automobiles has been climbing over the past decade. With the economy recovering from the recession, unemployment improving and gas prices decreasing, all have led to more cars being on the roads and higher claims frequency,” said Skrabal.
Skrabal also highlighted the increase in claim severity and cited several drivers: distracted driving from increased usage of smartphones, severe weather events, the legalization of marijuana and cars being built with more advanced technological features.
Additionally, Skrabal stated that, “Medical costs have increased significantly in recent years. This increase in severity, along with adverse reserve development in 2015 and 2016, has led to a large deterioration in both years' combined ratios for the personal automobile line.”
To access a copy of this market segment report, titled, “Personal Auto Showing Signs of Improvement,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=269661.
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