A.M. BestTV: Insurers Say Surging Frequency and Severity Roil Automobile Market

This A.M.BestTV examines a recent report by the Property/Casualty Insurers of America (PCI) that explores the reasons behind climbing claims costs associated with auto accidents over the past decade. Click on http://www.ambest.com/v.asp?v=auto216 to view the entire program.

“For a long time there has been an upward swinging curve that has increased auto claims severity, as cars have become more complex and technology more difficult,” said David Sampson, president and chief executive officer, PCI. “Beginning in 2014, there has been a rapid rising curve in frequency of accidents….now the concern is because of increased frequency and severity, what has been a relative benign automobile insurance marketplace, may in fact change going forward,” continued Sampson.

Sampson also said that distracted driving is a chief cause of the increase, but noted that more recently states that have either legalized medical or recreational marijuana “have seen the greatest spike in automobile accident frequency.”

Other people that appear in this episode:

• Paul Ehlert, president, Germania Insurance; and
• David Blades, senior research analyst – industry research & analytics, A.M. Best.

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A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

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