Making Profitability Certain in a Year of Uncertainty
“Most insureds, regardless of industry or vehicle class, should anticipate ongoing premium increases in 2024,” states CBIZ in their Commercial Auto Insurance Market Outlook for 2024.[1] In the realm of insurance, precision is paramount. Yet, underwriters face a myriad of challenges that hinder their ability to integrate comprehensive data into their processes effectively. From the pressures of rapid quote generation to the limitations posed by outdated technology, insurers grapple with modernizing their underwriting practices amidst profitability challenges stemming from escalating commercial auto claims.
“In commercial auto, insurers experienced a loss ratio of 72% in the first half of 2023 versus a 69% loss ratio year over year, indicating a higher incidence of losses,” so states a recent report issued by Nationwide. [2] Adjusting rates to keep pace with these rising loss trends becomes an uphill battle, eroding profitability over time. Furthermore, a decline in new policy submissions signals a deeper issue: agents and brokers find it increasingly challenging to navigate complex processes or receive adequate support. Consequently, they divert business to competitors offering more streamlined experiences. In this landscape, insurers grapple with the urgent need for automated, advanced analytics capable of bridging the data gap in underwriting processes, ensuring competitiveness and sustainable profitability.
“Moreover, policyholders with sizeable fleets or poor loss history may encounter double-digit rate increases, reduced capacity and potential coverage restrictions.” Consider this: as an insurance company, are you confident in your pricing strategies, or are you plagued by the fear of underpricing policies due to insufficient information about the businesses you insure? The specter of adverse selection looms large, with competitors potentially wielding superior insights into risk assessment. Furthermore, even when policies are accurately underwritten, unforeseen events often lead to losses surpassing expectations.
Enter Price Digests, the century-long stalwart in data mastery. With a 99.45% VIN return rate, Price Digests empowers insurers to make precise, data-driven decisions. Leveraging comprehensive data solutions tailored to commercial trucks, passenger vehicles, marine, powersport, and recreational vehicle asset classes, insurers gain unparalleled insights to elevate and streamline underwriting processes.
No longer must insurers grapple with undervaluing, underpricing, or frustration. Price Digests equips them with the tools needed to safeguard against unforeseen losses, enhance profitability, and streamline underwriting with unparalleled precision. By integrating data-driven insights into their operations, insurers can bolster risk management strategies, fortify profitability, and simplify underwriting processes to meet the evolving demands of the insurance landscape.
In a world where accuracy is paramount, Price Digests stands as the beacon of data-driven excellence. Through seamless integration of APIs, or custom data delivery, insurers gain access to perfect-fit data solutions tailored to their unique needs. With Price Digests as their trusted partner, insurers can navigate the complexities of the insurance industry with confidence, poised to make informed decisions that drive profitability and success.
1. Commercial Auto Insurance Market Outlook for 2024
