Personal Auto Pricing Since Great Recession
Many changes have taken place since the Great Recession, forever altering the personal automobile insurance pricing cycle. My latest Actuarial Review article, which is already attracting positive feedback, takes an in-depth look into what has affected personal auto insurance premiums since 2008.
The article, called, “The New Cycle of Pricing Personal Auto” covers several pertinent factors including:
- The relationship between frequency and employment.
- The curious sudden accident uptick in frequency by miles driven in the 4th quarter of 2014.
- The gradual increase in costs per claim (severity).
- A marked increase in driver distractions not just from cell phones but infotainment systems.
- A growth of driving while under the influence of marijuana and accident increase in states where use is legal.
- Auto manufacturers’ safety features reducing the frequency and severity of accidents.
- Big data and predictive modeling transitioning from a unique pricing strategy to a common insurance business practice.
- Low interest rates.
I am unaware of any other article that comprehensively looks into the auto insurance pricing cycle since the Great Recession. Thanks to James Lynch from the Insurance Information Institute for his assistance. Enjoy!
What do you think has most affected the auto insurance pricing cycle?
Like what you see?
Then follow me by clicking the button
on the bottom right hand side of this post.
0 Comments on "Personal Auto Pricing Since Great Recession"