Second Look 2020: The Commercial Auto Insurance Marketplace In Massachusetts.

As with our review of the private passenger auto insurance marketplace, Agency Checklists’ first update of 2020 on the current state of the commercial automobile insurance marketplace takes a look at the penultimate month of 2019, the last date for which complete data is available.

All of the data presented here is provided courtesy of the Commonwealth Automobile Reinsurers and represents the state of the market as of November 2019. For those unfamiliar with the Commonwealth Automobile Reinsurer, “CAR” is the official statistical agent for motor vehicle insurance in the Commonwealth of Massachusetts.

A look at the market as a whole…

Agency Checklists lists of top commercial auto insurers in the us

While no new official data on the Commercial Auto Marketplace in Massachusetts is available from the Division of Insurance, the National Association of Insurance Commissioners has issued its annual market share data for the U.S. Commercial Auto marketplace. For those interested in comparing this latest update with other information Agency Checklists has published on the Commercial Auto Insurance marketplace, please refer to the following reports:

The following is a list of all the companies writing commercial auto insurance in Massachusetts as of January 2020.

The Commercial Auto Insurance Marketplace in Massachusetts

RANK	COMPANY	PREMIUMS	MARKET SHARE
1.	COMMERCE	14,888,761	14.66%
2.	SAFETY	14,139,606	13.92%
3.	ARBELLA	11,289,473	11.11%
4.	TRAVELERS	10,556,373	10.39%
5.	TOKIO MARINE & NACHIDO	6,257,934	6.16%
6.	PROGRESSIVE	4,716,201	4.64%
7.	HANOVER	4,466,591	4.40%
8.	FIREMAN’S	4,234,204	4.17%
9.	PLYMOUTH ROCK	4,182,283	4.12%
10.	LIBERTY MUTUAL INS	3,486,034	3.43%
11.	TWIN CITY FIRE INS	3,405,578	3.35%
12.	SELECTIVE INSURANCE	2,317,432	2.28%
13.	ZURICH	2,004,065	1.97%
14.	AMERICAN CASUALTY	1,724,715	1.70%
15.	NATIONAL GRANGE	1,487,137	1.46%
16.	UTICA	1,333,641	1.31%
17.	FARM FAMILY	1,188,050	1.17%
18.	FEDERAL	1,143,935	1.13%
19.	EMPLOYERS MUTUAL	1,059,137	1.04%
20.	BANKERS	928,371	0.91%
21.	N&D MUTUAL	814,498	0.80%
22.	FEDERATED MUTUAL	701,243	0.69%
23.	GREEN MOUNTAIN	612,031	0.60%
24.	CENTRAL MUTUAL INS	576,807	0.57%
25.	GREAT AMERICAN	521,760	0.51%
26.	HARLEYSVILLE INS	489,183	0.48%
27.	US FIRE	422,183	0.42%
28.	QUINCY MUTUAL	397,755	0.39%
29.	MOTORISTS	389,645	0.38%
30.	MIDDLESEX INS CO	371,638	0.37%
31.	MERCH MUTUAL	316,972	0.31%
21	PREFERRED MUTUAL	240,326	0.24%
22.	NEW HAMPSHIRE	186,279	0.18%
23.	ATLANTIC SPECIALTY	184,726	0.18%
24.	PENN MNFCT ASSC INS	151,120	0.15%
25.	NEW YORK AND GENERAL INS	127,185	0.13%
26.	STATE AUTO	95,936	0.09%
27.	ARGONAUT INSURANCE COMPANY	61,354	0.06%
28.	AMICA MUTUAL	34,630	0.03%
29.	LANCER INSURANCE CO.	33,963	0.03%
30.	BERKSHIRE HATHAWAY	28,589	0.03%
31.	MARKEL	9,858	0.01%
32.	AMERICAN AUTOMOBILE	6,573	0.01%
33.	STATE FARM	3,539	0.00%
34.	PENN LUMBERMENS	620	0.00%
	TOTAL	101,587,934

A majority of the top Commercial Auto Insurers are Massachusetts-based

Similar to other years, the top three carriers, Commerce (MAPFRE), Safety, and Arbella, are all Massachusetts-based insurers with a combined market share of 39.69%. Out of the top 10 commercial auto carriers operating in the Commonwealth, a total of six are based here in addition to the top three: The Hanover, Plymouth Rock and Liberty Mutual. The following three graphs show the evolution of this marketplace over the past decade with looks at the makeup in January 2010, January 2015, and January 2020.

January 2010

January 2015

January 2020

CAR Special COVID-19 Notice

CAR has stated that in response to a number of inquiries it has received from Servicing Carriers and producers with regards to the COVID-19 crisis with respect to measures that may be taken to afford more flexibility to policyholders during the public health crisis, it has prepared the following guidance with respect to some commonly asked questions.

Please note that CAR also has cancelled its April Governing Committee meeting.

For our readers convenience we are reprinting them here as well as a link to the CAR website to view them there as well.

COVID-19 Update – March 31, 2020

Question:

Can the Servicing Carrier reduce or eliminate liability coverage on certain commercial vehicles?

Answer:

Note that CAR Rule 6.C.2. requires that physical damage coverage may only be written for an Eligible Risk in conjunction with liability coverage for that same vehicle. Therefore, liability coverage may not be eliminated. However, the requirement for liability coverage pursuant to Rule 6.C.2. would not prohibit a Servicing Carrier from reducing liability coverage limits to applicable statutory minimum requirements on a policy-wide or vehicle-specific basis if requested to do so by the insured. Be advised, however, that policyholders must comply with any financial responsibility law under other federal, state, or local jurisdictions.
Refer to Bulletin No. 1097 for further information.

Question:

Can the Servicing Carrier amend the rating territory of the business address and/or the radius to local where insureds have cited that their operations are shut down or very significantly diminished due to the public health crisis?

Answer:

Consideration of such changes is consistent with the DOI directive, but CAR recommends that Servicing Carriers employ a reasonability evaluation on a case by case basis and in concert with the requirements of any financial responsibility law under other federal, state, or local jurisdictions.

Question:

Recent CAR approved forms such as Principal Place of Business and Non-Fleet PPT certifications contemplate “wet signatures.” Given the manner in which insurance agents must conduct business during the public health crisis, can e-signatures be accepted on these documents as we all work to reduce person-to-person contact?

Answer:

Yes. The accommodation of electronic signatures keeps with the intent and spirit of the DOI’s Bulletin and helps to minimize the need for physical contact during this time.