Conning Research: Evolving Commercial Automobile Market Bears Watching as a Leading Cycle Indicator

HARTFORD, Conn., Sept. 8 /PRNewswire/ -- Commercial Automobile insurance is a highly fragmented market dominated by multiline generalists and "multi-specialist groups," and may be considered a leading indicator of the overall commercial lines insurance market, according to a new study by Conning Research & Consulting.

"Changes in commercial automobile results are important not only to the insurance groups with substantial premium written in the line of business, but also to insurers seeking to uncover developing trends in the broader commercial lines markets," said Clint Harris, analyst at Conning Research & Consulting. "Principal commercial automobile industry segments, such as construction and trucking, are leading economic indicators for the general economy. As commercial auto liability losses generally develop more rapidly than other commercial liability coverages, this line of business is often a harbinger predictor of things to come for other commercial insurance lines."

The Conning Research study, "Commercial Automobile Insurance: The Multi-Specialty Road Ahead" analyzes the customer and insurer conditions within the largest commercial automobile segments and examines trends in underwriting results. Segments analyzed include construction, trucking, automobile dealers and garage markets, and livery markets.

"The multi-specialist market strategy approach, as described in our study, incorporates advantages such as superior underwriting expertise and focused customer and distributor relationships. As a result, this model is expected to grow in market share," said Stephan Christiansen, director of research at Conning. "Diversification and 'group' return on capital needs can alter the dynamics of the specialty market segments. As expansion of multi-market insurance groups continues, opportunities for differentiated underwriting results among major commercial auto markets, historically enjoyed by focused specialists, are likely to diminish."

"Commercial Automobile Insurance: The Multi-Specialty Road Ahead" is available for purchase from Conning Research & Consulting by calling (888) 707-1177 or by visiting the company's web site at www.conningresearch.com.

About Conning Research & Consulting

Conning Research & Consulting is a division of Conning, a provider of asset management and insurance industry research and consulting services to insurers.  Conning Research & Consulting has published independent insurance industry research for 50 years, including market coverage of 30 segments of the industry in addition to industry forecasting and identification and analysis of major strategic issues. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.

SOURCE Conning Research & Consulting