Private Passenger Auto Insurance Trends In Georgia

1y ago
7 Views
2 Downloads
794.02 KB
26 Pages
Last View : 23d ago
Last Download : 2m ago
Upload by : Helen France
Transcription

Private Passenger AutoInsurance Trends in GeorgiaFrequency & Severity on the RiseInsurance Information InstituteAtlanta, GAMay 17, 2016Download at www.iii.org/presentationsRobert P. Hartwig, Ph.D., CPCU, President & EconomistInsurance Information Institute 110 William Street New York, NY 10038Tel: 212.346.5520 Cell: 917.453.1885 bobh@iii.org www.iii.org

A Few Factors Driving Adverse PrivatePassenger Auto Loss TrendsMore People Driving, Lower GasPrices, Higher Speed Limits 2

Return on Net Worth: Personal une 500Auto Insurance Profitability Has Been Falling for A Decade.SOURCE: National Association of Insurance Commissioners.3

Net Combined Ratio, 95.1%95%100.2%100%85%2007200820142015Loss Ratios Have Been Rising for A Decade. 2015 Return on NetWorth Is Likely Close to Zero or Negative.SOURCE: National Association of Insurance Commissioners data, sourced from S&P Global Market Intelligence; InsuranceInformation Institute.4

More Miles Driven More Collisions, 2006–2015:Q4Billions ofMiles Drivenin Prior YearMiles Driven (left axis)Collision Claim Frequency (right axis)3150Overall CollisionClaims Per 100Insured 06:Q12900The more miles people drive, the more likely they are to get in an accident,helping drive claim frequency higher.Sources: Federal Highway Administration (http://www.fhwa.dot.gov/policyinformation/travel monitoring/tvt.cfm ); Rolling Four-Qtr Avg.Frequency from Insurance Services Office; Insurance Institute for Highway Safety; Insurance Information Institute.5

More People Working and Driving More Collisions, 2006-2016NumberEmployed,Millions152Number Employed (left scale)Collision Claim Frequency (right scale)OverallCollision ClaimsPer 100 07:Q106:Q306:Q15.5When people are out of work, they drive less. When they get jobs,they drive to work, helping drive claim frequency higher.Sources: Seasonally Adjusted Employed from Bureau of Labor Statistics; Rolling Four-Qtr Avg. Frequency from Insurance ServicesOffice; Insurance Information Institute.6

Why Are PeopleDriving More Miles? Cheap Gas?Billions ofMiles Drivenin Prior YearMiles Driven (left axis)Avg. Price PerGallonGas PricesRecession3150 4.03100 3.53050 3.03000 Q311:Q110:Q310:Q109:Q309:Q108:Q308:Q107:Q3 1.507:Q1285006:Q3 2.006:Q12900Gas Prices Don’t Seem Correlated With Miles Driven.Sources: Federal Highway Administration (http://www.fhwa.dot.gov/policyinformation/travel monitoring/tvt.cfm ); Energy InformationAdministration; Insurance Institute for Highway Safety; Insurance Information Institute.7

Why Are PeopleDriving More Miles? Jobs?Billions ofMiles Drivenin Prior YearMiles Driven (left axis)MillionsEmployed# 8:Q107:Q307:Q106:Q306:Q12850People Drive To and From Work and Drive to Entertainment. Out of Work,They Curtail Their Movement.Sources: Federal Highway Administration (http://www.fhwa.dot.gov/policyinformation/travel monitoring/tvt.cfm ); Seasonally AdjustedEmployed from Bureau of Labor Statistics; Insurance Institute for Highway Safety; Insurance Information Institute.8

Comparing Gas Prices, Employment onCollision FrequencyGas price vs. CollisionFrequencyFreq.Number Employed vs.Collision 2.003.00Gas .65.555.5135140145150155Employment LevelSources: Seasonally Adjusted Employed from Bureau of Labor Statistics; Energy Information Administration; Rolling Four-Qtr Avg.Frequency from Insurance Services Office; Insurance Information Institute.9

Auto Fatalities Are RisingFatal Auto Accidents Are RisingFaster in Georgia at Nearly 3Times the Rate Nationally10

Severity: Driving Fatalities Are RisingDriving Has Been Getting Safer For Decades, But Recent Trend IsDiscouraging—38,300 Deaths in 2015Sources: National Safety Council, Insurance Information Institute.

Change in Auto Fatalities by State:Especially Severe in GeorgiaGA’s auto fatality rate hasincreased at a pace nearly 3times that of the US overalland far in excess of any otherstate in the region2015 vs. 201422%16%SC (954)12%KY (748)11%NC (1,396)8%-1%-5%0%5%USA (38,300)Fatalities inSoutheast RisingFaster Than USAas a Whole7%10%SOURCE: Estimates from National Safety Council.GA (1,394)15%20%VA (755)TN (961)25%

Private Passenger Auto Profitability inSoutheast States vs. USGeorgia is ProfitabilityLaggard in the Region andAmong the 50 States13

RNW PP Auto: NC, SC and GA vs. U.S.,2005-2014Average 2005-201414%US: 6.2%NC: 6.4%SC: 5.8%GA: 4.7%12%10%8%6%4%2%0%-2%-4%0506USSource: NAIC.0708NC0910SC11121314GA14

RNW PP Auto: TN, FL, MS, AL vs. U.S.,2005-201420%15%10%5%0%Average 2005-2014-5%US: 6.2%AL: 6.7%TN:5.8%GA: 4.7%FL: 3.9%MS: 3.6%-10%-15%-20%-25%0506USSource: NAIC.07TN08FL0910MS11AL121314GA15

Private Passenger Auto Frequency &Severity Trends in Georgia vs. SoutheastStates and USFrequency, Severity and LossRatios Are Up in Georgia16

Georgia Coverage: BI Severity & FrequencyTrends Are Both Higher in nual Change, 2005 through y200720082009201020112012201320142015The Recession, High Fuel Prices Helped Temper Frequency andSeverity, But this Trend Has Clearly Reversed, Consistent withExperience from Past RecoveriesSource: ISO/PCI Fast Track data; Insurance Information Institute17

Georgia Coverage: PD Frequency TrendsAre Higher in 1.6%8%5.2%Annual Change, 2005 through 2015201120122013Frequency20142015The Recession, High Fuel Prices Helped Temper Frequency andSeverity, But this Trend Has Clearly Reversed, Consistent withExperience from Past RecoveriesSource: ISO/PCI Fast Track data; Insurance Information Institute18

Georgia Coverage: Collision FrequencyTrends Are Higher in %GA’s Collision claimfrequency is upsharply over the pasttwo years0.0%Annual Change, 2005 through 2015Severity20112012Frequency201320142015The Recession, High Fuel Prices Helped Temper Frequency andSeverity, But this Trend Has Clearly Reversed, Consistent withExperience from Past RecoveriesSource: ISO/PCI Fast Track data; Insurance Information Institute19

Collision Loss Ratio Trending Upward:Pvt. Passenger Auto, GA vs. US, 2010 – 2015GA’s Collision loss ratio is up 23.7percentage points since 2010, morethan double the 11.2 percentage pointincrease nationally. For the first timein recent history, GA’s collision lossratio is above the US average.Loss 22013US20142015GACollision Loss Ratios are Rising Much Faster in Georgiathan the US OverallSource: ISO/PCI Fast Track data; Insurance Information Institute.20

Georgia Coverage: Comp Frequency,Severity Typically Tied to Weather Events44.0%Annual Change, 2005 through eather Events Drive Volatility in Comprehensive CoverageSource: ISO/PCI Fast Track data; Insurance Information Institute21

Georgia Coverage: Comp Frequency,Severity Typically Tied to Weather Events44.0%Annual Change, 2005 through he Recession, High Fuel Prices Helped Temper Frequency andSeverity, But this Trend Has Clearly Reversed, Consistent withExperience from Past RecoveriesSource: ISO/PCI Fast Track data; Insurance Information Institute22

Speed Limits Are Up All OverMetro AtlantaForce Mass x Acceleration*The Laws of Physics ApplyEverywhere, including Georgia*Newton’s Second Law of Motion23

Partnerships with Insurers: SellingSafety and Savings SimultaneouslySpeed limits are up allaround the denselypopulated metroAtlanta area—to ashigh as 70 mph insome areasSource: WABE at urance Information Institute research.24

Partnerships with Insurers: SellingSafety and Savings SimultaneouslySpeed limits are up allaround the denselypopulated metroAtlanta area—to ashigh as 70 mph insome areasSource: WABE at urance Information Institute research.25

Insurance Information Institute Online:www.iii.orgThank you for your timeand your attention!Twitter: twitter.com/bob HartwigDownload at www.iii.org/presentations26

GA's auto fatality rate has increased at a pace nearly 3 times that of the US overall and far in excess of any other state in the region. 13 Private Passenger Auto Profitability in Southeast States vs. US Georgia is Profitability Laggard in the Region and Among the 50 States. 14

Related Documents:

consumer guide to auto insurance contents introduction to auto insurance 1 understanding your auto insurance policy 2 required auto insurance 3 optional types of auto insurance 4-5 getting the right coverage 6 accidents and violations 7 how to shop for auto insurance 8 shopping tips 9 frequently asked questions 10-11 insurance complaints/when you have a problem 12

Hampshire Insurance Department does not mandate or set Auto Insurance Rates. Auto Insurance Rates will vary by insurance company. This guide is intended to give New Hampshire consumers basic information on auto insurance. It suggests ways to: Lower the cost of your auto insurance, shop for Auto insurance and, file an auto insurance claim.

auto auto auto. frozen drinks smoothies puree med high pulse low / dough. auto auto auto. frozen drinks smoothies puree med high pulse low / dough. auto auto auto. frozen drinks smoothies puree med high pulse low / dough. auto auto auto. please keep these important safeguards in mind when using the . appliance: mportant: make sure that the .

Auto insurance doesn't cover paying off your loan if your car is damaged and its market value is less than what you owe. Auto dealers and lenders may offer guaranteed auto protection (GAP) insurance for this purpose. Your auto insurance will cover you if you drive into Canada. To drive into Mexico, however, you'll need to buy Mexican auto .

Whether you are buying auto insurance for the first time, or shopping to be sure you are getting the best deal, you already know how important auto insurance is. By law in most states, if you own a car, you must have some auto insurance. Remember, there is no such thing as a "full coverage" auto insurance policy. Policies are made up of

Driver or Passenger Squib 1 open AND the stored DTC minutes for Driver or Passenger Squib 1 open is GREATER than the stored DTC minutes for Driver or Passenger Squib 2 by 15 minutes or more Squib 1 is live; Squib 2 was used. Driver or Passenger Squib 2 open Driver or Passenger Squib 1 open AND Driver or Passenger Sq

The king's insurance options 5 Things you need to know 7 The stuff you need to do 14 How to claim 16 Our commitment to you 20 Car insurance 22 Car warranty 37 Shortfall cover 45 Scratch and dent 46 Tyre and rim 48 Motorbike insurance 53 Trailer and caravan insurance 64 Watercraft insurance 68 Home contents insurance 77 Buildings insurance 89

A02 Authorised: return title page only to supplier A03 Authorised: keep as complimentary copy, credit will be given in full A04 Hold pending further investigation A05 Return to supplier regardless of condition A06 Claim authorised for credit Although it remains customary for the distributor to require the return of the complete book before giving credit, the code lists also provide for .