Involuntary Markets Commercial Automobile

Many of you may be wondering why the topic of Involuntary Markets is on the schedule for the Ratemaking Seminar this year. One only need look at the trade press to see an article on the Massachusetts involuntary auto market and its problems, the Maine workers compensation pool or the New Jersey personal auto JUA. The problems that the industry faces from any of these situations could likely be a seminar topic in itself, I will be addressing the Commercial Automobile Involuntary Markets. The results for fiscal year 1985 have a $29 million operating loss with $140 million of written premium and $93 million of earned premium. Fiscal year 1986 has a $74 million operating loss with $561 million of written premium and $386 of earned premium.- The significant growth in written premium seen from 1985 to 1986 is also seen from 1986 to 1987.