You are here:HomeNews CenterInsurance News2003Conning Says Car Owners Subsidizing Premiums for Light Truck and SUV Owners

Conning Says Car Owners Subsidizing Premiums for Light Truck and SUV Owners

Light trucks and SUVs generate the highest profits for automakers, but are fast becoming one of auto insurers' biggest risks, according to a new study...
September 16, 2003

Light trucks and SUVs generate the highest profits for automakers, but are fast becoming one of auto insurers' biggest risks, according to a new study by Conning Research. The study explains the many physical differences that cause trucks to inflict more severe injuries and greater damage than cars. In addition, the study delves into federal injury and property damage data to present the significant differences in liability exposure between the vehicle types, and it explores differential underwriting and the process needed to prepare and implement new pricing. Conning Director of Research Michael Weinstein said, "As the light truck category continues to expand, it is clear that the success of every personal auto company is contingent on differential pricing. Those that delay face adverse selection."

Filed under: