As with our recent review of the Private Passenger Auto Insurance Marketplace, the following is our Agency Checklists’ bi-monthly update on the current state of the commercial automobile insurance marketplace in Massachusetts.
All of the data presented here is provided courtesy of the Commonwealth Automobile Reinsurers and represents the state of the market as of July 2020. For those unfamiliar with the Commonwealth Automobile Reinsurer, “CAR” is the official statistical agent for motor vehicle insurance in the Commonwealth of Massachusetts.
An overview of the U.S. commercial auto insurance marketplace as a whole
According to the latest data from The National Association of Insurance Commissioners and outlined in our 2020 report, the Direct Written Premium for the top 25 commercial auto insurers in the U.S. was approximately $45,141,569,289 in 2019.
Of this group of the nation’s largest commercial auto insurers, Liberty Mutual was the only company based in Massachusetts who made the list. The Boston-based insurer is ranked as the third-largest commercial auto insurer with $1,888,125,510 in Direct Premiums Written and a 4.18% share of the national marketplace.
An overview of the commercial auto insurance marketplace in Massachusetts
According to the latest data on the Commercial Auto Insurance marketplace in the Commonwealth, there are currently 193 companies that are licensed to write commercial auto insurance here. The latest figures from the Division of Insurance states that the Total Direct Written premium for the entire marketplace was $916,026,84 in 2019, an increased from 2018 when it was $855,021,922.
Below is a list of all of the insurance companies that currently write commercial auto in Massachusetts along with how much they have written and how big their market share is as of May 2020. Some interesting things to note:
- MAPFRE/Commerce continues to edge out Safety as the largest commercial auto insurer in Massachusetts with a 15.00% market share at the mid-point of 2020.
- Safety continues to have the second-largest market share at 13.31% with Arbella rounding out the third spot with an 11.04% market share.
- While Liberty Mutual is the third-largest commercial auto insurer in the U.S., it is interesting to note it is only the ninth-largest in Massachusetts with a 3.88% market share.
- In a decade, Travelers has moved from the top spot in this marketplace down to the 4th position.
Commercial Auto Insurance Market Shares
A breakdown of all the current writers of commercial auto insurance ranked by Premiums and corresponding market share.
|6. PLYMOUTH ROCK||28,477,861||5.13%|
|7. TOKIO MARINE & NACHIDO||26,143,023||4.71%|
|9. LIBERTY MUTUAL INS||21,522,370||3.88%|
|12. SELECTIVE INSURANCE||11,343,334||2.04%|
|13. TWIN CITY FIRE INS||9,897,656||1.78%|
|15. NATIONAL GRANGE||9,219,629||1.66%|
|16. AMERICAN CASUALTY||6,006,582||1.08%|
|17. ARGONAUT INSURANCE COMPANY||5,776,998||1.04%|
|18. NEW HAMPSHIRE||5,356,007||0.96%|
|19. EMPLOYERS MUTUAL||5,350,914||0.96%|
|20. FARM FAMILY||4,979,225||0.90%|
|21. FEDERATED MUTUAL||4,868,329||0.88%|
|22. GREAT AMERICAN||4,663,427||0.84%|
|23. N&D MUTUAL||4,245,909||0.76%|
|25. GREEN MOUNTAIN||4,087,697||0.74%|
|26. US FIRE||3,765,849||0.68%|
|27. OLD REPUBLIC||3,385,970||0.61%|
|28. CENTRAL MUTUAL INS||3,097,339||0.56%|
|29. HARLEYSVILLE INS||2,863,412||0.52%|
|30. QUINCY MUTUAL||2,790,872||0.50%|
|31. MIDDLESEX INS CO||2,763,659||0.50%|
|32. MERCH MUTUAL||2,454,253||0.44%|
|33. STARR INDEMNITY||1,700,033||0.31%|
|36. NEW YORK AND GENERAL INS||1,461,674||0.26%|
|37. PREFERRED MUTUAL||1,372,327||0.25%|
|38. STATE AUTO||1,369,213||0.25%|
|40. ATLANTIC SPECIALTY||956,667||0.17%|
|43. PENN MNFCT ASSC INS||615,703||0.11%|
|44. PENN LUMBERMENS||549,644||0.10%|
|45. LANCER INSURANCE CO.||525,616||0.09%|
|46. STARSTONE NATIONAL||522,696||0.09%|
|47. SOMPO AMERICA||452,024||0.08%|
|48. AMERICAN AUTOMOBILE||441,952||0.08%|
|50. EVEREST NATIONAL||308,196||0.06%|
|52. ALLIED WORLD SPECIALTY||281,115||0.05%|
|53. MITSUI SUMITOMO||276,953||0.05%|
|54. CHURCH MUTUAL||269,644||0.05%|
|55. AXIS REINSURANCE||249,834||0.04%|
|57. AMICA MUTUAL||151,267||0.03%|
|58. SECURITY NATIONAL||146,109||0.03%|
|59. GUIDEONE MUTUAL||132,001||0.02%|
|60. BERKSHIRE HATHAWAY||61,627||0.01%|
|62. STATE FARM||49,033||0.01%|
|63. AMERICAN ALTERNATIVE||32,933||0.01%|
|65. T.H.E. INS CO||21,871||0.00%|
|66. HARCO NATIONAL||20,964||0.00%|
|67. NORTH AMERICAN SPECIALTY||14,131||0.00%|
|68. AMERICAN FAMILY||416||0.00%|
|69. HDI GLOBAL||375||0.00%|
A majority of the top Commercial Auto Insurers are Massachusetts-based
Similar to other years, the top three commercial auto insurers in the Commonwealth continue to be Massachusetts-based, Commerce (MAPFRE), Safety, and Arbella, with a combined market share of 39.35 down from the 42.5% market share in our last look.
Three other top 10 commercial auto carriers operating in the Commonwealth are also based in the Commonwealth: Plymouth Rock (6th), Liberty Mutual (9th) and The Hanover (10th). The following three graphs show the evolution of this marketplace over the past decade with looks at the makeup in July 2010, July 2015, and July 2020.