U.S. Personal Auto Insurance Results Worsen as Claims Severity Rises

auto insurance premiums fanning inflation

Following the worst year in the recent past for U.S. personal auto insurers, results continued to slide in the first half of 2023 as the segment posted a direct incurred loss ratio that was more than three percentage points above the one recorded in the same period of 2022, according to a new AM Best report.

Progressive CEO: Personal Auto Conditions Improved in Third Quarter

Florida and auto no fault coverage

Personal automobile insurance claims severity slowed in the third quarter as higher rates continued to lift premiums and unfavorable development and inflation abated, Progressive Corp. President and Chief Executive Officer Tricia Griffith said during a third-quarter earnings call.

Report on Auto Insurance Trends Offers Key Insights to Drive Profitability

Florida and auto no fault coverage

The annual LexisNexis® Risk Solutions Auto Insurance Trends Report explores how trends in U.S. consumer auto insurance shopping, driving violations, claims frequency and severity, vehicle safety features and more are impacting the auto insurance policy lifecycle from quote to underwriting to claims.

Commercial Pricing, Auto Results Support U.S. P/C Insurer 2022 Profits

Fitch Ratings on P&C industry 2024

Continued favorable commercial lines pricing and stabilization in personal auto results will lead to 2022 underwriting and profit improvement for U.S. property casualty (P/C) insurers, Fitch Ratings says in a new special report. However, surplus growth is likely to diminish significantly relative to the past three years. The P/C industry saw a slight deterioration in… Continue reading Commercial Pricing, Auto Results Support U.S. P/C Insurer 2022 Profits

U.S. Auto Insurer Outsized Profits to Normalize as Claims Rise in 2021: Fitch

auto insurance premiums fanning inflation

Personal auto insurers saw sharp increases in underwriting profits for 2020 that were supportive of credit, amid a reduction in driving that led to substantially fewer insurance claims for the year. However, competitive pricing forces and a return to historical claims frequency patterns as the economy recovers make this level of performance unsustainable, Fitch Ratings… Continue reading U.S. Auto Insurer Outsized Profits to Normalize as Claims Rise in 2021: Fitch

Auto Insurance Claims Satisfaction Climbs to Record High as Carriers Refine Customer Experience During Pandemic

auto insurance premiums fanning inflation

One silver lining to the COVID-19 pandemic: a 22% decline in frequency of auto insurance repairable claims has given insurers some breathing room to refine their customer experience and deliver higher touch and higher quality service during the claims process. According to the J.D. Power 2020 U.S. Auto Claims Satisfaction Study,SM released today, that laser… Continue reading Auto Insurance Claims Satisfaction Climbs to Record High as Carriers Refine Customer Experience During Pandemic

Will Personal Auto Insurers Enter a Price War?

Auto insurance costs

Personal insurers have been benefiting from fewer claims, but nothing lasts forever. Auto property-damage and injury frequency, as insurers put it, dropped by a quarter or more from a year earlier in the first half of 2020 at Allstate, Berkshire Hathaway’s Geico and Progressive, according to company filings. Not only were people driving fewer miles… Continue reading Will Personal Auto Insurers Enter a Price War?

Pandemic Impact on Personal and Commercial Auto Insurance: Deloitte

auto insurance premiums fanning inflation

With people generally driving a lot less due to the pandemic, personal and commercial auto insurance carriers should expect to see a steady decline in premiums written for the next several quarters, and perhaps even for years. But given the lower traffic density, profitability could get a boost since fewer accidents would likely result in… Continue reading Pandemic Impact on Personal and Commercial Auto Insurance: Deloitte

Despite Fewer Drivers on the Road, Motor Vehicle Death Rate Up 14% in March: NSC

Los Angeles California freeways empty during 2020 Coronavirus pandemic.

The COVID-19 pandemic has led to “open lanes of traffic and an apparent open season on reckless driving,” National Safety Council President and CEO Lorraine M. Martin said following the release of NSC preliminary estimates showing that, in March, the rate of motor vehicle fatalities in the United States was 14% higher than in March… Continue reading Despite Fewer Drivers on the Road, Motor Vehicle Death Rate Up 14% in March: NSC