AUTO INSURANCE RATES IMPACTED BY LABOR CRUNCH, SUPPLY CHAIN DISRUPTIONS
AUTO INSURANCE RATES IMPACTED BY LABOR CRUNCH, SUPPLY CHAIN DISRUPTIONS
In a recent interview with CNBC, Dr. Michelle Leonard, vice president of Triple-1 and senior economist, explained how returning to pre-pandemic driving levels increases auto accident rates.
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| AUTO INSURANCE RATES IMPACTED |
More accidents mean a larger amount of more expensive claims to pay insurers because of higher repair costs, delay in repair time due to chip shortage, supply chain disruption and labor shortages.
The Consumer Price Index shows that the auto insurance index rose 16.9 per cent in May from a year earlier, up 6.4 per cent in April from the previous year.
Alice Greenspan, managing director of Wells Fargo, said the year-on-year increase as a result of the premium base in May 2020 reflects epidemic refunds. Triple-I analysis shows that US auto insurers returned 14 billion to their customers last year due to a sharp drop in the number of miles traveled.
Greenspan describes the current auto insurance market as soft even after the recent rate hike. She added that not all insurance companies raise rates. "It's still a good environment for consumers buying auto insurance."
Auto insurance, theft