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Auto Insurance Information and News » Nonstandard Auto Insurance Market Is Not For Everybody

Nonstandard Auto Insurance Market Is Not For Everybody

Nonstandard Auto Insurance Market Is Not For Everybody
News from Insurance Journal:

The nonstandard auto market is not for every carrier or agency. Since 2007, carriers writing nonstandard auto policies have reported deteriorating operating performance and many have struggled to maintain market share.

But while some have been hurt by or lost interest in the market, others have invested in technology and building the scale needed to serve this volatile, transaction-heavy, service-oriented line of business.

The exact size of the nonstandard auto market is hard to pin down. Industry estimates calculate the market at 30 to 40 percent of the total private passenger auto insurance industry. According to Conning Research & Consulting’s “Personal Lines Consumer Markets Annual” report published in late 2014, that could from $ 33 billion to $ 40 billion in annual premium.

The nonstandard auto industry is highly concentrated geographically. Three states – Texas, California and Florida – accounted for 59 percent of all direct premiums written in 2013, according to an A.M. Best report, “Under Pressure: U.S. Private Passenger Nonstandard Auto Market,” published in November, 2014. The remaining 40 percent or so of business is spread more evenly throughout the United States, with no other state having more than five percent of nonstandard auto premium.

According to the A.M. Best report, no carrier writes more than 10…………… continues on Insurance Journal

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