Conning Releases 2025 Commercial Auto Study: Industry Faces Persistent Losses, Rising Costs, and Structural Challenges

HARTFORD, Conn., Sept. 23, 2025 /PRNewswire/ -- Conning has released its latest report on the commercial auto insurance market, 2025: Commercial Auto Insurance Market - Challenges and Opportunities, providing a comprehensive analysis of one of the most persistently underperforming sectors in the property-casualty insurance industry. The report explores the financial deterioration, emerging risks, and evolving underwriting strategies shaping the future of commercial auto insurance.

"Despite more than a decade of rate increases, the commercial auto line remains a challenge," said Alan Dobbins, a Director in Insurance Research at Conning. "Our 2025 study highlights the dual crises of escalating liability losses and post-pandemic physical damage costs, which continue to challenge insurers and policyholders alike."

The study highlights several key developments:

• Persistent Underwriting Losses: Commercial auto insurance has recorded 13 consecutive years of underwriting losses, with combined ratios consistently above 100%, despite 55 straight quarters of rate increases.
• Escalating Claim Severity: Social inflation and nuclear verdicts have driven liability claim costs sharply higher, with claim severity up 64% since 2015.
• Driver Shortage Intensifies Risk: The U.S. faces a growing commercial driver shortage—leading to higher accident rates as fleets hire less-experienced drivers.
• Rising Physical Damage Costs: Advanced vehicle technology, supply chain disruptions, and inflation have pushed repair costs up significantly and prolonged claim resolution.
• Emerging Risks from EV Adoption: Fleet electrification introduces new exposures, including cyber vulnerabilities, battery fire hazards, and higher repair costs, requiring insurers to rethink pricing and risk strategies.

"The commercial auto market is at a crossroads," Dobbins added. "Insurers will need to go beyond pricing adjustments and invest in predictive analytics, safety technologies, and smarter underwriting to restore profitability."

The report also examines the impact of regulatory changes, litigation trends, and macroeconomic pressures on underwriting results. Conning outlines a path forward for insurers that embraces innovation and operational discipline.

For more information on the 2025: Commercial Auto Insurance Market - Challenges and Opportunities click here, or to request a copy of the full report, please visit www.conning.com or contact (888) 707-1177.

ABOUT CONNING

Conning (www.conning.com) is a leading investment management firm with a long history of serving the insurance industry. Conning supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe, and North America. Conning is part of the Generali Group.

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SOURCE Conning, Inc.