Press Release - JANUARY 28, 2019

AM BestTV: U.S. Non-Standard Auto Insurers See Improved Results, Face Obstacles, Say AM Best Analysts

 Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561


In this episode of AM BestTV, David Blades, associate director, and Bob Skrabal, financial analyst, both of AM Best, review a recent market segment report that shows the U.S. non-standard automobile sector has started to show improvement after a long period of unfavorable results. Click on to view the entire program.

According to the AM Best market segment report, the U.S. non-standard automobile insurance segment experienced a difficult decade, with an average combined ratio of 106.5. That figure improved in 2017 and continued to improve in the first half of 2018.

Skrabal addressed the difficulties non-standard automobile writers experienced in the past decade, and what factors are behind the more-recent shift.

“Rising frequency and severity, as well as adverse selection and increased competition from standard automobile writers, were the main reasons for the difficult decade,” said Skrabal. “However, most of the positive shift is due to aggressive rate increases taken by automobile insurers in 2017 and 2018.”

Blades spoke about the biggest challenges U.S. non-standard writers will likely face in 2019.

“Going forward, U.S. non-standard automobile companies will have to embrace the uniqueness and the unique risk challenges that are presented by insurers that seek out U.S. non-standard automobile coverage, as well as handling the basic blocking and tackling in terms of making the right risk selection and charging the proper prices,” he said.

To access a copy of this market segment report, titled, “Early Signs of Improvement in Nonstandard Auto Market,” visit .

Recent episodes of AM BestTV include:

  • Complex Catastrophe Losses Are Having a Wider Impact, Says AM Best Chief Rating Officer: Stefan Holzberger, senior managing director and chief rating officer, AM Best, said recent hurricanes and wildfires created business interruptions and other losses beyond the expectations of modelers, insurers and investors: .

  • Partial Federal Shutdown Hampers U.S. Insurers’ National Efforts: Attendees at the Insurance Information Institute’s Joint Industry Forum said the partial shutdown of the U.S. federal government is hampering progress on a host of issues, ranging from floods to tariffs: .

  • Property/Casualty Insurers’ Outlook for 2019 Positive, But With a Chance of Upheaval: Attendees at the Insurance Information Institute’s Joint Industry Forum said the industry has demonstrated its ability to weather storms and other natural disasters, but will be buffeted by an increasingly contentious political climate and an advancing technology sector: .

  • Insurance Industry Honors Marsh & McLennan Companies CEO: ‘A Passion for Running to Problems and Solving Them’: Insurance industry executives honor Daniel S. Glaser, president and chief executive officer of Marsh & McLennan Companies, Inc., as the School of Risk Management’s “2018 Insurance Leader of the Year”: .

AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at . View AM BestTV episodes at .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry.