President Joe Biden has requested nearly $100 billion in federal aid to support communities devastated by recent hurricanes and other natural disasters. In a letter to House Speaker Mike Johnson, Biden emphasized the urgent need for disaster relief funds to address widespread damage caused by Hurricanes Helene and Milton, as well as other disasters over the past two years. The proposed aid package aims to rebuild essential infrastructure, such as schools and roads, and provide assistance to farmers, ranchers, and families affected by recent calamities. Biden described the funding as critical for maintaining access to healthcare services and supporting recovery in the hardest-hit areas. He urged Congress to act without delay, highlighting the dire consequences of funding shortages. Biden's request includes $40 billion for the Federal Emergency Management Agency's (FEMA) Disaster Relief Fund, which is facing a significant funding shortfall. The request also earmarks $24 billion for the Department of Agriculture to help farmers who lost crops and livestock, and $12 billion for the Department of Housing and Urban Development (HUD) to support rebuilding efforts in more than 20 states and territories, including areas recovering from tornadoes and fires. The Biden administration has highlighted the critical nature of the proposed funding, noting that the last comprehensive disaster aid package passed by Congress was in 2022. Since then, numerous storms, wildfires, and other disasters have stretched federal relief programs to their limits. Shalanda Young, director of the Office of Management and Budget, emphasized that Americans are "still picking up the pieces" from past catastrophes. Biden's appeal comes as political dynamics in Washington are in flux, with upcoming changes in leadership potentially complicating efforts to secure funding. However, key congressional figures have expressed openness to considering the request, particularly since much of the aid would benefit states represented by Republicans. Representative Tom Cole of Oklahoma expressed support after visiting an area hit hard by Hurricane Milton. Biden pointed to past bipartisan efforts to fund disaster recovery, urging Congress to demonstrate the same unity shown after major disasters like Hurricane Katrina and Hurricane Sandy. With emergency programs facing funding shortages, Biden's request seeks to secure resources needed for ongoing and future recovery efforts, helping Americans rebuild in the face of increasingly severe natural disasters.

The U.S. government is overhauling its vehicle safety ratings, introducing advanced driver-assistance technologies and pedestrian safety measures for the 2026 model year. The National Highway Traffic Safety Administration (NHTSA) announced the changes Monday, fulfilling requirements outlined in the 2021 bipartisan infrastructure law.

Updated Safety Features

NHTSA's revised ratings will evaluate vehicles on several new technologies, including:

• Pedestrian automatic emergency braking
• Lane-keeping assist
• Blind spot warning and intervention These features aim to prevent crashes or mitigate their severity for pedestrians and other road users.

The agency is also enhancing performance standards for existing technologies such as automatic emergency braking. Transportation Secretary Pete Buttigieg emphasized that the updates reflect a shift in focus from crash survivability to crash prevention and pedestrian safety.

Consumer Information Changes

Under the updated system, vehicles will retain the existing five-star crash test ratings. However, buyers will also see additional indicators, such as green checkmarks, on NHTSA's website to signify that a vehicle includes and meets the new safety standards. Initially, features will be graded on a pass/fail basis, with a scoring system introduced later for more detailed comparisons.

Automaker Compliance and Standards

The new rules will encourage automakers to accelerate the adoption of advanced safety features. These features can be offered as standard or optional equipment. Automatic emergency braking, for example, will be mandatory on all passenger vehicles by 2029 and must meet stricter standards. Additionally, the agency plans to implement pedestrian safety design standards similar to those in Europe. These standards will address potential injuries to pedestrians struck by vehicles at speeds of 25 mph.

Industry and Safety Advocacy Responses

The Alliance for Automotive Innovation, a major industry trade group, acknowledged the importance of the updates but called for more regular revisions to drive sustained investment. Safety advocates, including Cathy Chase, president of Advocates for Highway and Auto Safety, welcomed the changes but urged further action. Pending technologies, such as impaired driving prevention systems and seat belt reminders, remain on their wish lists.

Historical Context and Traffic Fatalities

NHTSA noted that previous updates to the crash test ratings, introduced in 2008, contributed to reductions in crashes, injuries, and fatalities. Between 2001 and 2021, deaths inside vehicles dropped from 32,043 to 26,325. However, pedestrian fatalities rose by 51% over the same period, highlighting the need for improvements. In 2022, nearly 41,000 people died in traffic crashes nationwide, a 3.6% decline from 2021. Fatalities peaked in 2021, with a 10.5% increase attributed to increased post-pandemic travel. The new safety standards are part of a broader effort by the Department of Transportation to implement additional regulations before the end of President Biden's term. According to Secretary Buttigieg, these efforts aim to deliver impactful safety improvements and respond to evolving transportation needs.

According to the Global Insurance Report 2025 from McKinsey, the commercial property and casualty (P&C) insurance industry finds itself at a crossroads in 2025. The sector is grappling with a complex macroeconomic environment, characterized by persistent inflation, shaky consumer confidence, and geopolitical instability. These forces have introduced layers of uncertainty that commercial insurers must navigate. Beyond these challenges, increasing climate risks and rising corporate legal costs are squeezing profit margins. Given the hard realities of today’s economic landscape, insurers are under growing pressure to identify and sustain profitable growth strategies that go beyond simply raising premiums.

Finding Growth Beyond Rate Increases

Despite these turbulent conditions, the global commercial P&C insurance market has managed to maintain steady growth. Over the past five years, premiums have increased by an average of 8% annually. Much of this growth, however, has come from rate increases rather than organic expansion. This means that while insurers have enjoyed higher premiums, other factors have diminished the overall impact on growth. As the industry faces softening market conditions, the challenge now is not just about raising rates but also about finding sustainable and diversified growth opportunities. Insurers can no longer rely on the continuation of a hard cycle to maintain profitability—they must adapt to a rapidly changing landscape to capture long-term value.

The Challenge: Capturing and Sustaining Profitable Growth

A core finding of the Global Insurance Report 2025 is that capturing profitable growth is increasingly about execution rather than just portfolio strategy. Analysis of 25 global commercial P&C insurers reveals that profitability is influenced more by operational capabilities than by the lines of business insurers participate in. Simply put, where insurers operate matters, but how they operate matters more. Successful insurers are those that have a robust approach to execution, particularly in their core lines of business. The analysis found that 60% of an insurer’s performance comes down to how effectively they operate, rather than the markets they enter. This observation holds true across both hard and soft market cycles, meaning that consistency in operational excellence is key to achieving and sustaining growth in any market environment.

Four Key Drivers of Superior Performance

Top-performing commercial P&C insurers share several characteristics that set them apart from their competitors. The Global Insurance Report 2025 identifies four key drivers that contribute to their sustained profitability:

• Focused Strategy and Clear Communication: Leading insurers have well-defined growth strategies that are understood both internally and externally. They prioritize investments in targeted capabilities, such as specialized talent and efficient channels, which allows them to differentiate effectively.
• Underwriting Modernization: A commitment to modernizing underwriting, particularly through technology, has helped top performers distinguish themselves. The adoption of tools like generative AI is enabling these companies to refine underwriting processes, leading to better risk assessment and more competitive offerings.
• Efficient Distribution: Top insurers are also adept at navigating the shifting distribution landscape. By focusing on driving down acquisition costs, they gain a significant efficiency advantage over their peers.
• Operational Excellence: Finally, these companies maintain lower administration costs through operational efficiencies. On average, leaders in the industry have administrative expense ratios that are two percentage points lower than their competitors.

Opportunities in a Changing Market

Commercial P&C insurers are facing a period of significant change, driven by macroeconomic uncertainties and increasing competition. However, these challenges also present opportunities. By shifting focus away from premium increases and toward addressing the widening protection gap, insurers can find new avenues for growth. Additionally, there is potential to reduce the prevalence of self-insurance among businesses, providing further growth opportunities for commercial lines. In an industry where strong players tend to stay on top, moments of significant market change—such as the current one—offer a chance for insurers to distinguish themselves from the competition. Those that are agile enough to respond to the new landscape, invest in innovative solutions, and consistently execute their strategies will be well-positioned to emerge as leaders.

The Path Forward

The 2025 outlook for commercial P&C insurers is complex but not without promise. As highlighted in McKinsey's Global Insurance Report 2025, while macroeconomic and environmental challenges will continue to shape the market, there is ample opportunity for insurers to carve out profitable niches by modernizing their operations, focusing on operational efficiencies, and leveraging technology to improve underwriting precision. Insurers that can move beyond relying solely on premium hikes will find themselves better equipped to navigate the challenges ahead and to seize the growth opportunities that lie in the evolving market landscape.

The U.S. Forest Service has unveiled a plan to boost logging across federal lands in the Pacific Northwest. The initiative aims to mitigate wildfire risks, control the spread of wildfires, and breathe new life into rural economies by increasing timber supply. This proposal marks a major revision to the Northwest Forest Plan, a framework that has regulated forest management across 38,000 square miles in Oregon, Washington, and California since 1994. Originally crafted to curb destructive logging and protect vulnerable species like the northern spotted owl, the plan has now evolved in response to a changing climate.

Federal officials argue that  wildfire conditions and increasing frequency of wildfires, driven by climate change, necessitate a more proactive approach to forest management. This proactive strategy is crucial to minimizing the impact of wildfires, which have grown increasingly destructive in recent years. The proposed plan also aims to provide a reliable supply of timber, offering an economic boost to rural communities that have faced economic decline since the drop in logging activity during the 1990s. The draft environmental study suggests that timber harvests could rise by at least 33% and potentially more than 200%, which would lead to a corresponding rise in timber-related employment. Over the past decade, the 17 national forests covered by the Northwest Forest Plan have produced an average of 445 million board feet of timber annually. A significant change under the new proposal would be raising the age threshold for logging from 80 years to 120 years, allowing for more extensive thinning. Officials argue that removing younger, fire-prone trees could foster conditions favorable for the growth of larger, fire-resistant old-growth trees. In addition, the updated plan calls for closer cooperation with Native American tribes, whose traditional knowledge of forest stewardship was largely excluded when the original 1994 plan was implemented. Not everyone supports the changes. Environmental advocates, such as Oregon Wild, have voiced concerns that the new direction could undermine protections for old-growth forests and threatened species. The timing of the proposal, just before a presidential transition, also raised suspicions about the Forest Service's motivations. During the Trump administration, there were efforts to open West Coast forest areas to more logging by reducing habitat protections for species like the spotted owl—a move that was later reversed by the Biden administration. The Forest Service has opened a 120-day public comment period for the proposal, with a final decision expected by early 2026. Officials maintain that the changes will strike a balance between wildfire mitigation, economic development, and environmental protection, adapting forest management to better align with current challenges posed by climate change.

The Council for Disability Income Awareness (CDIA) has announced that The Plus Group, Inc.® has joined as a new member. This partnership marks the first time a coalition of independent Brokerage General Agencies (BGAs) has partnered with the CDIA, further expanding the Council's reach.

The Plus Group Joins CDIA to Expand Disability Insurance Awareness

The Plus Group's president, Timothy J. O'Brien, CLU, shared his enthusiasm: “We are thrilled to join the CDIA and support its mission. Understanding the value of disability income insurance is crucial for both consumers and professionals. Our commitment to promoting financial security aligns seamlessly with the Council's objectives. Together, we can create meaningful initiatives to educate the public and improve access to income protection.” Bob Herum, president of the CDIA, also expressed his excitement: “We are delighted to welcome The Plus Group as the first BGA member of the CDIA. This partnership highlights their dedication to promoting disability income protection as an essential safeguard for every working American.”

Expanding the CDIA Network

The Plus Group joins a distinguished list of CDIA members, including Allsup, Ameritas, American Fidelity, Guardian, Illinois Mutual, Lincoln Financial Group, MassMutual, MDGuidelines, MetLife, MGIS, SmithGroup, The Claim Lab, United Healthcare, and UNUM. Together, these organizations are dedicated to raising awareness about the importance of disability income insurance and protecting financial security for all Americans. About The Plus Group The Plus Group, known as "America's Premier Disability Insurance Marketing Organization," was established in 1998 and is made up of independent BGAs. The group provides disability insurance products and training to insurance agents, brokers, CPAs, financial planners, and employee benefits advisors. Known for personalized service, The Plus Group leads the industry in disability income sales, training, and education, serving thousands of professionals across the country. For more information, visit The Plus Group. About the Council for Disability Income Awareness (CDIA) The CDIA is a non-profit organization committed to promoting disability income as an essential part of financial planning for every working American. Learn more at disabilitycanhappen.org.

To enhance coverage for manufactured homeowners, Standard Casualty Company has announced a new partnership with ZestyAI, a leading provider of AI-powered property and climate risk analytics. This partnership aims to improve risk assessment accuracy and help policyholders proactively manage their risks, especially in the face of increasing extreme weather events.

Through ZestyAI’s advanced AI analytics, Standard Casualty will be able to assess property-specific risks faster and more precisely. This will enable Standard Casualty to maintain coverage for high-risk manufactured homes, particularly in vulnerable states like Texas, Georgia, Arizona, and New Mexico, where climate change-driven events such as wildfires, hailstorms, and other severe weather pose significant challenges. Rick Smith, Underwriting Manager at Standard Casualty, highlighted the importance of working with ZestyAI: “We chose ZestyAI because their team knows the industry inside out, and no one else provides the regulatory support that they do. The platform’s transparency and functionality allow us to actively partner with our policyholders on reducing risk rather than simply denying coverage.”

Proactive Risk Management: Empowering Homeowners Before Disaster Strikes

Manufactured homes, commonly known as mobile homes, can be particularly vulnerable to natural disasters due to their construction and design. Fires, floods, and severe storms are all significant risks for these types of properties. By integrating ZestyAI’s suite of AI solutions—Z-PROPERTY, Z-FIRE, and Z-HAIL—Standard Casualty aims to actively collaborate with policyholders to manage and mitigate these risks.

• Z-PROPERTY provides deep property-specific risk insights by evaluating building characteristics and environmental factors, enabling precise underwriting decisions.
• Z-FIRE assesses wildfire hazards and property vulnerability using structural details and climate interactions, helping insurers like Standard Casualty engage homeowners with targeted risk reduction strategies.
• Z-HAIL predicts hail risk by analyzing climatology, geography, and structural features in 3D, helping policyholders prepare for one of the most frequent and costly hazards in the U.S.

These tools will enable Standard Casualty to work more closely with manufactured homeowners to identify vulnerabilities and adopt protective measures, ultimately ensuring that comprehensive coverage is maintained—even in areas that have traditionally been considered too high-risk.

Setting a New Standard in Manufactured Home Insurance

Attila Toth, CEO and Co-Founder of ZestyAI, emphasized the strategic alignment of the two companies: “Standard Casualty’s commitment to reducing policyholder risk aligns seamlessly with our mission at ZestyAI. Our solutions empower insurers like Standard Casualty to guide homeowners by mitigating risks, offering actionable insights into wildfire and hail exposure.” The partnership is a significant step toward transforming the manufactured home insurance landscape, setting a new benchmark for how insurers and homeowners can collaborate to tackle risk head-on. By focusing on proactive risk management, Standard Casualty and ZestyAI are leading the way in protecting manufactured homeowners from increasingly complex climate threats while maintaining affordable, comprehensive coverage options. This collaboration reaffirms Standard Casualty’s role as a trusted leader in the manufactured home insurance market—leveraging innovative technology to ensure homeowners can safeguard their properties in the face of an unpredictable climate. About Standard Casualty Company Standard Casualty Company, a specialized home-insuring solution business of Cavco Industries, Inc.,has protected homeowners and their investments in manufactured homes for nearly 60 years. As a specialist in manufactured home insurance, Standard Casualty offers comprehensive protection plans for homeowners, backed by exceptional service from dedicated customer support and claims adjusters who ensure fast, accurate claim resolutions. Learn more about Standard Casualty Company at www.stdins.com. About ZestyAI ZestyAI is the leading property and climate risk platform for Property and Casualty insurers in North America. The company has revolutionized the world’s understanding of property and climate perils by combining artificial intelligence with historical losses and cutting-edge data sources. Leading insurers and real estate companies trust ZestyAI’s platform to identify risk and assess exposure, including the impact of catastrophic events like wildfires, hail, and wind storms. ZestyAI helps insurers make more informed underwriting decisions, rate fairly and accurately, enhance reinsurance outcomes, and improve customer experience through actionable risk insights that both property owners and regulators trust. For more information on how ZestyAI is revolutionizing risk management, visit www.zesty.ai.

The Texas legislative session is in full swing, and lawmakers are set to debate a series of bills to reshape the state's workers' compensation system. A key focus is on S.B. 338 and H.B. 875, which propose making workers' compensation coverage mandatory for contractors and subcontractors in the construction industry. This legislative push could mark a significant policy shift for Texas, currently the only state in the U.S. where employers are not required to provide workers' compensation insurance.

Current State of Workers Compensation in Texas

Texas is the only state that does not mandate workers' compensation coverage for most employers. This unique approach has long been debated among lawmakers, industry stakeholders, and workers’ rights advocates. The introduction of S.B. 338 and H.B. 875 represents a significant step towards increasing protection for workers in the construction sector, one of the most dangerous industries in the country. If passed, these bills could improve safety measures and hold companies accountable for workplace injuries, providing a stronger safety net for construction workers who face daily risks on the job.

Other Legislative Efforts to Strengthen Worker's Comp

In addition to focusing on the construction industry, lawmakers have introduced several other bills aimed at expanding workers compensation coverage across Texas:

• H.B. 673: This bill proposes extending workers comp benefits to first responders who have post-traumatic stress disorder (PTSD). First responders like firefighters, EMTs, and police officers often face traumatic experiences, and this bill requires a "preponderance of evidence" to show that PTSD is linked to specific events at work.
• S.B. 220: Aimed at providing additional rights to employees who experience sexual assault in the workplace, this bill would allow those with intellectual or developmental disabilities, or those whose employer was negligent, to sue outside of the typical worker's comp protections.
• H.B. 1292: This proposal seeks to mandate annual cost-of-living increases for individuals receiving death benefits under workers' compensation, helping beneficiaries maintain financial stability despite rising inflation.

Why the Construction Industry Needs Reform

The construction industry remains one of the most dangerous sectors for workers, highlighting the need for these legislative changes. Some key statistics underscore the risks construction workers face:

• The construction industry accounts for nearly 21% of all worker fatalities in the private sector.
• Falls are the leading cause of death in construction, responsible for about 33% of all fatalities.
• Non-fatal injuries in construction often lead to significant time away from work, averaging 28 days per incident.
• The total cost of construction injuries in the U.S., including medical expenses and lost productivity, exceeds $13 billion annually.

Balancing Costs and Benefits

Making worker's compensation mandatory for Texas construction firms could bring both opportunities and challenges. On one hand, the financial costs for businesses—including higher project expenses and potential price adjustments—are a notable concern. However, improved worker safety, reduced liability for businesses, and greater employee satisfaction could ultimately offset these costs. As the debate unfolds, lawmakers will need to balance these financial realities with the need to provide robust protections for those working in one of the most hazardous industries in the state. The outcome of these legislative discussions will not only shape the future of workers compensation in Texas but could also serve as a model for other states considering similar reforms.

Floods are among the most destructive natural disasters, and as climate change fuels extreme weather, the economic impact of flooding is set to rise. According to a recent Swiss Re Institute study, the economic benefits of flood adaptation measures—such as dykes, dams, and flood gates—can be up to ten times more cost-effective than post-disaster rebuilding efforts. With global flood losses reaching USD 51.6 billion in 2023 alone, the case for proactive adaptation has never been clearer.

Flooding Costs and the Growing Need for Adaptation

Swiss Re reports that natural catastrophes cost the global economy approximately USD 280 billion in 2023, with floods comprising nearly a fifth of these losses. As both climate change and urban sprawl intensify, the risk and cost of floods will likely increase, especially in densely populated areas where asset values are high. The Swiss Re Institute's analysis highlights that protective infrastructure, particularly in flood-prone regions, significantly reduces damage and can have a benefit-to-cost ratio of up to ten times compared to rebuilding efforts. "Investments in climate adaptation, such as flood preparedness, not only promote economic stability and create jobs, but also help keep people safe," said Veronica Scotti, Chairperson Public Sector Solutions at Swiss Re. However, Scotti noted that current underfunding limits these benefits. Addressing this shortfall, she explained, will require both public and private capital flows into adaptation projects, bolstered by a clear understanding of their financial benefits.

Quantifying the Benefits of Flood Defense Measures

To guide investment decisions, Swiss Re conducted a detailed study comparing the economic benefits and costs of flood adaptation measures. The findings show that grey infrastructure—such as dykes and levees—is especially effective, with benefits outweighing costs by as much as seven times globally and up to ten times in flood-prone zones. These structures, when built to optimal standards, can reduce flood damage by 60-90% in densely populated areas. For less populated areas, nature-based solutions like barrier island restoration or foreshore vegetation provide a comparable level of protection. Swiss Re also found that policy interventions, including land-use restrictions, can increase the value of flood adaptation measures, especially in emerging economies. Notably, these measures are nearly twice as effective as accommodative tactics, like dry proofing, for managing coastal and river floods.

A Collaborative Approach to Risk Adaptation

Swiss Re highlights that collaboration between public and private sectors is essential to effectively manage and finance flood adaptation projects. By focusing on risk prevention, public entities can reduce future flood losses, transferring residual risks to the re/insurance sector. Early involvement of insurers in the planning of flood defenses not only mitigates financial exposure but also ensures communities remain protected and resilient in the face of rising flood threats. The Swiss Re study underscores the urgency of climate adaptation and the tangible financial benefits that flood defenses offer. As the frequency of extreme weather events continues to increase, effective flood adaptation strategies are more than just economic advantages—they are essential for the safety and stability of communities worldwide.

The National Council on Compensation Insurance (NCCI) has released its annual Carrier Executive Survey, unveiling the leading concerns for workers’ compensation executives heading into 2025. The survey, which gathered insights from over 100 executives in the sector, underscores the financial health of the workers' compensation system and rising medical inflation as the industry's top priorities. “Each year, our Carrier Executive Survey captures the pulse of the industry and helps us pinpoint key issues facing workers compensation stakeholders,” stated Bill Donnell, President and CEO of NCCI. This year’s results reflect an enduring focus on the stability of the compensation system and the impact of medical costs, as well as concerns over economic uncertainty and evolving workforce dynamics.

Financial Health of the Workers’ Compensation System Remains Strong

One of the central questions among survey respondents centers on whether the robust financial health of the workers’ compensation system will continue. Over the past decade, the industry has seen combined ratios consistently below 90%, a marker of profitability and stability in the insurance world. Preliminary data for 2024 indicates that the trend of low combined ratios, currently hovering around 90%, will likely persist. NCCI attributes this financial health to improvements in workplace safety and advancements in automation, contributing to a nearly two-decade decline in claim frequency across states where NCCI offers ratemaking services. “This trend of frequency decline is one we expect to continue,” said Donnell, reinforcing a cautiously optimistic outlook for the coming year.

Medical Inflation Pressures Rising

Medical inflation has emerged as another pressing concern for the workers’ compensation sector. Executives have voiced increasing worry over the growing costs of medical care and their potential impact on the overall system. While current medical inflation in workers' compensation remains moderate—falling within the 2.5–3.5% range—the trend is being closely monitored, as healthcare costs in workers’ compensation can behave differently compared to other sectors. Addressing the complexities of medical inflation will be a top priority in 2025, with NCCI aiming to provide industry stakeholders with updated insights and strategies at its Annual Insights Symposium in 2025.

Economic and Workforce Shifts: Adapting to a Changing Landscape

While financial health and medical inflation are top concerns, NCCI's survey also highlights economic uncertainty and the evolving nature of work as additional challenges. The post-pandemic era has introduced shifts in workforce expectations and an accelerated adoption of remote work models, prompting the workers' compensation industry to adapt its practices accordingly. NCCI, with a century of experience, continues to serve as a critical source of data and advisory for the industry. As NCCI looks ahead to its 2025 Annual Insights Symposium, executives and stakeholders anticipate exploring these issues in depth, with the goal of fostering a resilient, adaptive workers' comp system. For more details, read NCCI’s full report on the top industry concerns or register for NCCI’s Annual Insights Symposium 2025. About NCCI: With over a century of expertise, NCCI remains at the forefront of workers’ compensation research, providing the industry’s most comprehensive data, insights, and analysis. Through its work as a licensed rating, advisory, and statistical organization, NCCI upholds a mission to support a stable and healthy workers' compensation system, underpinned by a commitment to inclusion, diversity, and respect.

As electric vehicle (EV) adoption grows, so does the demand for repair and collision data on these new technologies. In Q3 2024, Mitchell, An Enlyte Company, reported notable trends in EV claims data across the U.S. and Canada. While sales of battery electric vehicles (BEVs) have slowed somewhat, they still account for 8% of new U.S. car sales (up 11.3% year-over-year) and 9.49% in Canada (up 18.47% year-over-year). However, a rise in BEV collisions—up 47% in the U.S. and 26% in Canada—indicates emerging patterns in how BEVs perform in accidents.

Key Trends in EV Collision Claims

1. Increased Collision Frequency and Slower Repair Times Claims frequency for BEV collisions has surged. In the U.S., BEV collision repair cycle time averages 19.5 days—18% longer than for internal combustion engine (ICE) vehicles. Canada mirrors this trend, with BEVs taking 17.2 days for repairs, compared to 14.3 days for ICE vehicles, a 20% increase. Repair times for hybrid electric vehicles (MHEVs) and plug-in hybrids (PHEVs) are also significantly longer than for traditional gasoline-powered vehicles.
2. Repair Costs and Severity Decline in the U.S., Rise in Canada While average claims severity for repairable BEVs in the U.S. saw a slight decrease, down to $5,560 per vehicle, costs in Canada have climbed. Canadian claims severity for BEVs reached $6,923 CAD, reflecting regional differences in repair dynamics and economic conditions. The increase in Canada is notable across all powertrains except BEVs.
3. Price Parity Affects Total Loss Outcomes As BEV and ICE vehicle prices approach parity, differences in total loss values have narrowed. In Q3, the average total loss market value for BEVs was $32,718 in the U.S. and $41,380 CAD in Canada, close to those for newer ICE vehicles of similar model years. The total loss frequency for BEVs and ICE vehicles is nearly identical, though Canada’s total loss figures were impacted by a rise in catastrophic claims this quarter.
4. Impact Dynamics: Front vs. Rear-End Collisions BEVs are more likely to sustain rear-end impacts, while ICE vehicles tend to have front-end collisions. Rear-end accidents account for 35.98% of BEV collisions compared to 27.57% for ICE vehicles, while ICE cars see more front-end impacts (31.59% versus 25.88% for BEVs). This disparity impacts repair costs, as front-end accidents are nearly 40% more expensive to repair than rear-end collisions. The difference in impact patterns may be due to BEV-specific features like single-pedal driving and advanced front crash avoidance technologies.
5. Shift Toward Hybrid Technology Over Full BEVs With BEV adoption facing some market resistance, manufacturers are pivoting towards hybrids. Hybrid sales, according to the U.S. Energy Information Administration, rose to 9.6% of the light-duty vehicle market in Q2 2024. Yet, plug-in hybrids (PHEVs) may face challenges as they reportedly score lower in consumer satisfaction compared to BEVs, particularly regarding battery range and total cost of ownership.

What This Means for the Industry

The Q3 data sheds light on the complexities of integrating BEVs into traditional collision repair processes. With longer repair times and evolving repair dynamics, insurers and repair shops must adapt their processes and expectations to manage the shift effectively. As the industry continues to collect and analyze data on EV collisions, trends in point-of-impact and cost discrepancies may guide future EV design and claims processes. The full report offers further insights into the growing field of EV collision claims and repair metrics, providing a clearer picture of how EVs are reshaping the collision landscape across North America.