Players in the U.S.
AM Best, which has a stable market segment outlook on the private passenger nonstandard auto segment, is estimating direct premium of $17.8 billion for 2021, which would represent a year-over-year 7.2% increase.
However, the report notes that whether the premium momentum of first-half 2021 will last through the rest of the year remains uncertain.
Additionally, according to the report, higher fraudulent claims costs have weakened underwriting profitability in the AM Best composite of writers of private passenger nonstandard auto.
In addition, AM Best believes that efficient technology platforms with extensive, highly credible data sets and multivariate rating analyses have helped some of the large national private passenger auto insurers expand their presence in the nonstandard market.