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Friday, 03 August 2018 21:19

What Is the Future for New, Used Car Sales Claims?

Written by Susanna Gotsch, Property Casualty 360

Index

 

 

The U.S. economy continues to be strong; unemployment numbers are at all-time lows, and the U.S. has seen registered vehicle counts grow again to nearly 1.3 vehicles per licensed driver, said Michael Wayland in his U.S. sales outlook on autonews.com.

 

However, as growth in vehicle registrations has again surpassed overall growth in U.S. miles driven, the miles driven per vehicle (a proxy for “accident exposure”) have fallen, helping collision and property damage liability claim frequency to also taper.

 

For example, repairable claim counts (excluding comprehensive) for 2018 through June were up only 0.4 percent from the same period in 2017.

 

Less severe winter and spring weather in many parts of the U.S. has also meant fewer overall losses. A comparison of the share of losses with primary impact of hail or water for the first six months of the year reveal a much smaller percent in 2018 versus several prior years.

 

Comprehensive losses’ share of overall repairable and total loss claim counts fell in both Q1 and Q2 of 2018 compared to prior years.

 

Assuming no major economic event, such as a full-blown trade war or recession, or no major catastrophe such as a Superstorm Sandy or Hurricane Harvey, data from the first six months of the year would suggest that 2018 will see little growth, if any, in accident and claim counts.

 

However, given rising costs and repair complexity, both the insurance industry and collision repairers will remain under pressure to have the training and tools to operate efficiently and effectively.

 

Susanna Gotsch is director and industry analyst for CCC Information Services Inc. Contact her at sgotsch@cccis.com.

 

The information and opinions presented are for general information only, are subject to change and are not intended to provide specific recommendations for any individual or entity.

 

This article was originally published on PropertyCasualty360.com. Copyright (c) ALM Media Properties. All Rights Reserved. Republished here with permission.


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