Latest statistics from the National Association of Insurance Commissioners indicates that the percentage of premiums going to pay losses has increased.
Data contained in the National Association of Insurance Commissioners (NAIC) report on profitability by insurance line in 2015, released this month, illustrates the increasing percentage of underwriting dollars going to pay claims on auto physical damage (APD) insurance. This has resulting in declining underwriting profitability from the period 2005 through 2015.
As the chart above shows, incurred losses were 56.7 percent of direct premiums written in 2005 on private passenger APD insurance. In 2015, incurred losses have grown to