Commercial auto insurance has faced significant underwriting losses, rate increases and decreased profits in recent years due to the ongoing hard market. In 2022, AM Best reports the industry saw $3.3 billion in underwriting losses, which lead to rate increases around 8% to start 2023. According to a 2024 market outlook from advisory services provider CBIZ, the biggest trends expected to shape the commercial auto insurance market this year are: |

Commercial driver shortages

In 2023, there were reportedly 64,000 open commercial driving positions, and that number is expected to peak in 2024 at around 82,000 openings. This shortage, combined with an increase in freight demand, has led to major struggles for the transportation sector. This has led many companies to lower their applicant standards in an attempt to fill these positions. |

Rising nuclear verdicts

Social inflation has affected the commercial auto insurance space because of a surge in nuclear verdicts in the trucking industry. These verdicts have increased by more than 50% each year for the last decade. CBIZ reports that auto accidents account for one-quarter of nuclear verdicts in the sector with an average verdict of $33.8 million. |

Conflicting cannabis legislation

While marijuana is still illegal at a federal level, many states have legalized its usage. However, these laws are inconsistent state-to-state, and the conflict between state and federal laws creates potential risk due to commercial drivers who are operating vehicles under the influence of cannabis, which could lead to increased risk exposure for companies. |

Repair and claims inflation

The price of auto parts and vehicle repair increased by 23% between 2022 and 2023 – nearly four times the average rate of inflation. This has been exasperated by advancements in vehicle technology, auto part demand, supply chain issues and labor shortages. In the slideshow above, we'll look at the top ten commercial auto insurers for 2024, according to the National Association of Insurance Commissioners (NAIC).

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