Session Description: The U.S. auto insurance industry is facing multi-year profitability challenges. Skyrocketing car repair costs have become our new normal. Post-COVID driving patterns, riskier driving behaviors and the growing impact of climate change are increasing severity. Meanwhile, inflation and auto industry supply chain shortages are upping claim costs with no end in sight.
This session will explore how these macro trends are impacting the P&C auto industry and show how you can respond to these challenges with better rating and pricing. We’ll take a deep dive into U.S. crash data and how this new powerful data source can be used to augment or even replace traditional territory rating. We’ll also discuss emerging opportunities to apply these concepts to telematics data as the data exchange model continues to expand.
Learning Objectives:
Attendees will be able to understand road design in the context of crash risk as well as auto insurance claims risk.
Attendees will be able to describe the traditional approach to territory rate making, its limitations, and improvements envisioned by R. Brubaker.
Attendees will be able to conceptualize applications of road risk infomation for both non-telematics and telematics risk assessment.
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