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Commercial auto premiums rise while underwriting losses remain high
Commercial auto posted about a $1.9 billion underwriting loss in 2025 and carried a 103.5 combined ratio, pushing underwriters to scrutinize safety documentation at renewals.
Commercial auto is becoming an outlier in the US insurance market as brokers face more pressure to justify renewal terms for individual fleets, even while overall commercial P&C premiums have softened, according to Insurance Business. The Council of Insurance Agents & Brokers said commercial auto premiums increased an average 4.5% in the second quarter of 2026, compared with a 2.0% average decline across all commercial P&C account sizes.
The underlying performance gap reflects continued underwriting stress in commercial auto. AM Best data cited by Insurance Business showed the line generated an underwriting loss of about $1.9 billion in 2025, improving from the $4.9 billion loss a year earlier, but still posting a 103.5 combined ratio, with liability losses outweighing profitable physical damage results.
Against that backdrop, Alera Group P&C practice leader Justin Foa said brokers and clients need to bring more than “a good story” to renewals. Insurance Business reported Foa told underwriters are increasingly looking for logs, procedures, maintenance records, and proof of an active safety culture to demonstrate stronger operational controls and improve underwriting outcomes.
Recent trucking data highlights why insurers remain selective even as the broader commercial environment loosens. Insurance Business cited American Transportation Research Institute research saying motor carrier liability costs rose 18.6% between 2021 and 2024 to 10.2 cents per mile, while heavy-duty truck-involved crash rates fell 2.6%, as per-mile liability losses increased 33.1%. It also said excess insurance became more expensive, with per-mile premium costs rising 34% for the $5 million to $10 million layer and 45% for the $10 million to $15 million layer between 2021 and 2024.