US COMMERCIAL MOTOR SECTOR POSTS WORST LOSS IN 10 YEARS: REPORT

The US commercial motor insurance sector posted a 2019 underwriting loss of $4bn, marking its worst figure over a 10-year period of declining results, according to a report by AM Best. Driven by a 2-point increase in incurred losses, the sector’s combined ratio added 1.4 point to 109.4% for the year, Best said. The growth in incurred losses and loss adjustment expenses, in turn, has been driven by costlier litigation from social inflation and abuse of litigation financing, offsetting the year’s double-digit growth in earned premiums, the report said. Last year was the eighth consecutive in which the sector’s combined ratio was higher than both commercial lines and the property/casualty sector as a whole.