2016 was a challenging year for the Independent Auto Dealers
insurance market. Carriers continued to exit this class of business and
those remaining took significant rate increases. Underwriting tightened
up with property and physical damage tools that will hopefully mitigate some of
the previous years’ weather losses the industry has experienced.
Even with all of the turmoil going on, D.M.I. managed to achieve an 84% renewal
retention of the quotes offered. This is due to the strength of our
producers. We appreciate your business and hope 2017 sees significant
growth for all of us and a return to profitability for the carriers.
- Susan Matlock
Auto Liability Market Observations
Observed Increases in both frequency and severity
285M reserve strengthening in Q2 2015
Increasing rates 20% - 80%
300M reserve strengthening in Q3 2015
Reserve strengthening in Q1 2016
Paring back auto
Taking rate and non-rate actions to improve profitability
“Commercial auto is very challenged."
corrective actions after disappointing 2015
During Q3 2016, AM Best lowered outlook to negative due to adverse
prior years development in commercial auto
Hiking rates, taking underwriting actions and limiting new business
Increasing rates due to loss ratio deterioration
Underwriting losses leading to rate
increases and underwriting changes
“Disappointed we didn’t recognize earlier the magnitude of the
Expects auto rates to continue increasing, even as other lines see
Commercial Auto remains a loser, with 2015 producing the 5th
straight year of underwriting losses
“Poor performance is a reflection of previous overly aggressive
pricing and a recent extended period of heightened claims severity.”
Q2 2016 – loss ratios rose to highest levels in 15 years
Get to know Susan
What is your position at DMI:
When did you begin working at DMI:
What is your favorite part about DMI:
The comradery our staff has. Many of the staff have been here 15+ years. We've known each other such a long time.
What do you find challenging at DMI:
The constant change in market conditions.
I am married with 4 children, ages 36, 34 27 & 23. My husband and I were high school sweethearts. We enjoy traveling, golfing, and sailing.