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…
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:
- NAIC 2020 Market Share Report: The Top 25 Commercial Auto Insurers
- 2019 MA Market Share Report: The Top Commercial Auto Insurance Companies in Massachusetts
- 1st Look 2019 – The Commercial Auto Insurance Marketplace In Massachusetts
- 2nd Look 2019 – The Commercial Auto Insurance Marketplace in Massachusetts
- 3rd Look 2019 – The Commercial Auto Insurance Marketplace in Massachusetts
- 4th Look 2019 – The Commercial Auto Insurance Marketplace in Massachusetts
- Last Look 2019 – The Commercial Auto Insurance Marketplace in Massachusetts
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
|5.||TOKIO MARINE & NACHIDO||6,257,934||6.16%|
|10.||LIBERTY MUTUAL INS||3,486,034||3.43%|
|11.||TWIN CITY FIRE INS||3,405,578||3.35%|
|24.||CENTRAL MUTUAL INS||576,807||0.57%|
|30.||MIDDLESEX INS CO||371,638||0.37%|
|24.||PENN MNFCT ASSC INS||151,120||0.15%|
|25.||NEW YORK AND GENERAL INS||127,185||0.13%|
|27.||ARGONAUT INSURANCE COMPANY||61,354||0.06%|
|29.||LANCER INSURANCE CO.||33,963||0.03%|
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.
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
Can the Servicing Carrier reduce or eliminate liability coverage on certain commercial vehicles?
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.
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?
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.
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?
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.