MICH., MO. SHARED AUTO PLANS HAD UNDERWRITING LOSSES:

A new report by the Property Casualty Insurers Association of America (PCI) shows that residual market plans for private passenger auto insurance continue to result in significant losses for insurance companies, and Michigan and Missouri are two of the nine states whose residual market plans generated an underwriting loss in 2001. According to the report, the private passenger auto residual market increased from 1.5 percent of premiums nationwide in 2000 to 1.8 percent in 2001. That reverses a trend of annual declines in the residual market share since 1992 when it was 5.6 percent. In the vast majority of states, the market share is less than 1 percent, but seven states have more than the average market share. The residual market’s loss ratio of 146.1 in 2001 was down considerably from 2000’s 181.8, but still 75 percent higher than that year’s private market ratio.

Topics Profit Loss Auto Underwriting Missouri