What’s Going On With Auto Premiums — And How Does Claims Handling Fit In?
During the pandemic, the number of hours driven, across the nation, decreased by 13%. However, during that same period, the number of auto fatalities increased by 7%. As we move from a pandemic to an endemic, traffic congestion will increase as people move from WFH to hybrid work, kids got to school for an entire year, etc. Across the board it is expected that both the frequency and severity of auto losses will continue to increase.
The insurance industry’s “get out Jail” free pass has always been rate increases and some national carriers are leading the charge, but not all of them are increasing rates. State Farm and Progressive are actually decreasing rates. Does this mean these carriers have a better claim department and are able the defend their exposures better than those carriers implementing rate increases?
The “new normal” post pandemic is an increase frequency AND severity. Rate increases are unavoidable but they won’t be the answer if you’re still handling claims like its 1985. Fraudsniffr can help by supporting adjusters with the research and data needed to inform their claims decisions.