Key Insights for the Road Ahead: Top 5 Auto Insurance Trends of 2023
ADAS-equipped vehicles can be more expensive to repair due to costly parts that need replacement, increasing severity.
Insurers will need to tune their pricing models and go through a learning curve to properly price EVs due to their fundamental differences from traditional combustion engine vehicles.
Insurers can also re-underwrite policies based on prior loss history and other factors.
Prior claims history, both at-fault and not-at-fault (where permitted), is highly predictive of future insurance loss, and insurers should explore innovations in sourcing this data from other places to improve their underwriting.
Auto insurers implemented record-high rate increases in 2023 to address profitability issues, but it appears that these rate hikes were not sufficient.
