Best’s Special Report: Highly Innovative Personal Auto Carriers Have Significant Competitive Edge
These are among the key findings in a new Best’s Special Report titled, “Highly Innovative Personal Auto Carriers Have Significant Competitive Edge.”
- These are among the key findings in a new Best’s Special Report titled, “Highly Innovative Personal Auto Carriers Have Significant Competitive Edge.”
AM Best has been scoring and assessing insurers’ innovation efforts since 2020, which reflects its important role in helping insurers keep pace with a changing market environment. - “Personal auto as a line of business is well suited to innovation,” said Helen Andersen, industry research analyst, AM Best.
- “Carriers deal with large homogenous risks, allowing initiatives to be scaled and replicated relatively easily.”
According to the report, personal auto carriers that are deemed highly innovative capture greater market share, grow their business faster, and have lower combined ratios than insurers that are not. - Among insurers that primarily write personal auto business, carriers designated as an innovation “Leader”
have seen average NPW growth of 13.3% since 2018, compared with only 5.5% growth for AM Best’s personal auto insurers’ composite.