Commercial auto insurance remains one of the most challenging areas of the insurance market. Although conditions are beginning to improve across several other lines of coverage, commercial auto remains difficult because of the frequency and severity of claims.

“Nuclear verdicts”—i.e., jury awards that are exceptionally high compared with the actual economic damages involved—have become increasingly common. Many businesses have experienced their effects directly or indirectly. No industry with vehicles on the road is immune, regardless of fleet size, operating radius, or travel frequency.

These rising claim costs have led to:

• Greater underwriting scrutiny
• Reduced carrier capacity
• ...