Additional coverage: Rising interest rates and corporate profit will boost industry revenue

Recovering from a low postrecessionary base, increasing prices, a strong economic environment, and an expanding fleet of vehicles have been instrumental to the Commercial Auto Insurance industry's increased revenue during the five-year period. Furthermore, the strengthening job market and higher disposable income have helped stimulate economic growth and have revitalized the domestic consumer in the wake of a shaky economic climate. In conjunction, the domestic vehicle fleet for consumers and commercial users alike has steadily risen higher, giving way for industry operators to increase coverage exposure...purchase to read more.

Industry Statistics & Market Size
Revenue
$33bn
Annual Growth 12-17
4.4%
Forecast Growth 17-22
Profit
Employment
47,246
Businesses
1,427

Industry Threats & Opportunities

  • Improved economic conditions and renewed commitment to higher interest rates fuel industry growth
  • Given the nondiscretionary nature of liability insurance policies, net premiums written have remained fairly stable
  • Interest rate trends are anticipated to benefit the industry over the next five years
  • Industry Report - Starting a New Business Chapter

    The Commercial Auto Insurance industry operates with high barriers to entry. The ability to obtain adequate capital to pool risk and underwrite insurance policies, while complying with mounting regulatory requirements, comprise the most significant barriers to entry in the industry. Moreover, the Commercial Auto Insurance industry is highly competitive, with the presence of well-established and reputable brands deterring new entrants. Progressive, a major player in the industry, estimates that about 45 of its competitors write at least $150.0 million in premiums annually. Additionally, Progressive estimates that these 45 operators represent about 80.0% of the total commercial auto insurance market. The...purchase to read more.

    Additional Insights for the Commercial Auto Insurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Auto Insurance Industry are

  • Ability to effectively manage risk
  • Management of a high quality assets portfolio
  • Having a cost effective distribution system
  • IBISWorld analysts also discuss how external factors such as Number of motor vehicle registrations and Number of vehicle accidents in the Commercial Auto Insurance industry impact industry performance..

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    Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of motor vehicle registrations
  • Number of vehicle accidents
  • Corporate profit
  • Yield on 10-year Treasury note
  • S&P 500

  • Current Performance
  • Price trends
  • Product group distinctions
  • Mounting focus on profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Moderate recovery lifts policy volumes
  • Improving net gains on assets
  • Table: Commercial Auto Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial Auto Insurance Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Local Freight Trucking
  • Long-Distance Freight Trucking
  • Moving Services
  • Automobile Towing
  • Taxi & Limousine Services

  • Key Selling Industries
  • Insurance Brokers & Agencies
  • Reinsurance Carriers
  • Third-Party Administrators & Insurance Claims Adjusters

  • Products & Services
  • Liability insurance
  • Collision and comprehensive insurance
  • Investment income
  • Chart: Commercial Auto Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Insurance agents and brokers
  • Business clients
  • Other
  • Chart: Major Market Segmentation for the Commercial Auto Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Loss and loss adjustment costs
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Auto Insurance

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Auto Insurance Industry

  • Industry Globalization
    Progressive Casualty Insurance Company, Liberty Mutual Insurance Group, The Travelers Companies Inc., Zurich Insurance, Nationwide Mutual Insurance Company,
  • Table: Progressive Casualty Insurance Company - financial performance
  • Table: Liberty Mutual Insurance Group - financial performance
  • Table: The Travelers Companies Inc. - financial performance
  • Table: Zurich Insurance - financial performance
  • Table: Nationwide Mutual Insurance Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial Auto Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Commercial Auto Insurance Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of Motor Vehicle Registrations (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Combined Ratio
  • Equal to the loss ratio plus the expense ratio and is a common measure of profitability in the insurance sector.
  • Expense Ratio
  • Equal to other underwriting expenses as a percentage of earned premiums.
  • Incurred Loss
  • Equal to the total number of paid claims and loss reserves in a particular time period.
  • Loss Ratio
  • Equal to incurred loss and loss adjustment expenses as a percentage of earned premiums.
  • Underwriting
  • The process where insurers assess the risks to insure and decide how much to charge for those risks.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Commercial Auto Insurance Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Commercial Auto Insurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Commercial Auto Insurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Commercial Auto Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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