The latest statistics from the National Association of Insurance Commissioners indicates that the percentage of premiums going to pay losses has continued to increase. Private passenger physical damage insurance turned to a loss in 2016.
Data contained in the National Association of Insurance Commissioners (NAIC) report on profitability by insurance line in 2016, released this month, illustrates the increasing percentage of underwriting dollars going to pay claims on auto physical damage (APD) insurance continued to increase in the U.S. This has resulted in declining underwriting profitability from the period 2005 through 2016. The increasing costs grew beyond insurance companies’ investment