Goldberg Segalla's David Brown on commercial auto insurance challenges

Goldberg Segalla partner David Brown was quoted extensively in a Law360 article examining the persistent challenges facing the commercial auto insurance sector. According to a recent AM Best report, the industry has posted underwriting losses for 14 consecutive years. Co-chair of the firm’s Global Insurance Services practice group, David offers insight into why rate increases alone are not enough, and what insurers must do to navigate rising litigation costs and prolonged claims.

Goldberg Segalla partner David Brown was quoted extensively in a Law360 article examining the persistent challenges facing the commercial auto insurance sector. According to a recent AM Best report, the industry has posted underwriting losses for 14 consecutive years. Co-chair of the firm’s Global Insurance Services practice group, David offers insight into why rate increases alone are not enough, and what insurers must do to navigate rising litigation costs and prolonged claims.

Goldberg Segalla partner David Brown was quoted extensively in a Law360 article examining the persistent challenges facing the commercial auto insurance sector. According to a recent AM Best report, the industry has posted underwriting losses for 14 consecutive years. Co-chair of the firm’s Global Insurance Services practice group, David offers insight into why rate increases alone are not enough, and what insurers must do to navigate rising litigation costs and prolonged claims.

Goldberg Segalla partner David Brown was quoted extensively in a Law360 article examining the persistent challenges facing the commercial auto insurance sector. According to a recent AM Best report, the industry has posted underwriting losses for 14 consecutive years. Co-chair of the firm’s Global Insurance Services practice group, David offers insight into why rate increases alone are not enough, and what insurers must do to navigate rising litigation costs and prolonged claims.

Small businesses often hesitate to file insurance claims, even when coverage could provide critical support. Concerns about higher premiums, unclear policy terms, and the perception that claims should be avoided drive this reluctance. Insurance is meant to be used. It is a central part of resilience and effective risk management. In Insurance Business Canada, Tang Trang, Vice President of Small Business Insurance at TD Insurance, outlines why this hesitation persists and what the industry can do to close the gap between coverage and use.

When it comes to insurance, don't judge the policy or its endorsements by their titles. Read the text in full or pay someone to do it for you. A cautionary tale: Fast-moving professionals don't have time for dense memos or to read every line in a 300 page insurance policy. Insurers know this. It is not a surprise, then, that many insurers bury major limitations on coverage in lengthy definitions of terms or in endorsements that have seemingly innocent titles. For example, property insurers are increasingly issuing "Occurrence Limit of Liability" or "Margin Clause" endorsements. The first sounds like it deals with the definition of "occurrence." The second one seems like it would have something to do with premiums or capital requirements. Nope. In the text of these endorsements, insurers have inserted language that they argue limits coverage only to the stated value of each piece of property. In practice, that means a $10 million property policy is only worth whatever the insured said each piece of property is worth. This becomes a major issue if one policy is insuring multiple pieces of property. And can severely limit coverage. Insureds are incentivized to be conservative on the stated value of property because insurers use those values to calculate the premium. Seems like a problem, right? Sure is. In 2023, we challenged one of these endorsements in court. The judge ruled it was too incoherent to be enforceable. But it took years of litigation and expense to get there. That can be avoided by doing diligence up front on the company’s policies. That is why you never judge a policy by its cover. And never accept a coverage denial at face value. #RiskManaged #insurance #riskmanagement #insurancecoverage #insuranceclaims #legal

This case really highlights the complexity — and importance — of clear agreements and governance structures between Authorised Representatives and their licensee networks. As the courts have reinforced, licence holders carry the ultimate responsibility for client protection and compliance, while ARs must maintain integrity and transparency in every aspect of their work. It’s a strong reminder that alignment, trust, and shared values between both parties are essential for sustainable partnerships. It also reinforces why finding the right network or AR relationship is so critical. When culture, compliance standards, and long-term vision are truly aligned, every party benefits — most importantly, the clients.

... commercial auto insurance has posted underwriting losses for 13 consecutive years, with combined ratios remaining above 100% despite 55 quarters of steady rate increases.   Liability costs have surged as social inflation and large jury awards drive claim severity higher, rising more than 60 percent since 2015. … “Despite more than a decade of rate increases, the commercial auto line remains a challenge,” commented 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 Texas Department of Insurance (TDI) has published draft mandatory appraisal rules for personal auto and residential property insurance in the state, with public comment open until Oct. 6. https://lnkd.in/eTzcyCiD

Insurance and Legal Reforms Work! A new report from reinsurance giant Gallagher Re confirms that recent legislative and legal reforms are successfully reversing Florida’s insurance crisis, bringing much-needed market stability. Check out the facts: • Litigation Drops: The number of property claims lawsuits against carriers has dropped significantly (to 2018 levels). • More Capacity: 14 new insurance companies have entered the Florida market since the reforms. • Costs Down: Reinsurance prices have fallen, including a risk-adjusted reduction in the latest renewals. • Market Health: Policies with the state insurer, Citizens Property Insurance Corp., have dropped sharply as business moves back to the private sector. The results are clear: reforms work to attract capital and stabilize the market. Go deeper: