Study Says SUV Classification Can Boost Profitability

According to Michael C. Dubin, a consulting actuary for Milliman & Robertson, insurance organizations can increase their profits by putting sport utility vehicles (SUVs) in their own rating classification for liability rates.

Dubin cited the Highway Loss Data Institute’s discovery that SUVs have 72 percent more property damage liability loss than other vehicles. His study was recently published by Bests’s Review.

There are 3 million SUVs on the road in the U.S. Dubin argued that SUVs present risk characteristics different than regular passenger vehicles and that company’s would be well-served in classifying them accordingly.