Report: Nonstandard Auto Insurance Segment Appears on Rise
Dec. 26, 2018—There are initial signs that the private passenger nonstandard automobile segment is beginning to improve after years of unfavorable results, including continued premium growth in 2017 and through mid-year 2018, reported Insurance Journal.
The findings come from Best's Market Segment Report, "Early Signs of Improvement in Nonstandard Auto Market," and the report states that the recent improvements reflect a variety of carriers’ underwriting initiatives, including increasing rates significantly over the last few years.
As the auto premium base expanded in 2018, loss cost trends and severity increases have mostly been in line with companies’ expectations.
Some large national private passenger auto insurers have expanded their presence in the nonstandard auto insurance market through more efficient technology platforms. The resulting competitive pressure on smaller writers has resulted in some being acquired by national writers.