Never heard of “social inflation”? It’s a fancy term to describe rising litigation costs and their impact on insurers’ claim payouts, loss ratios, and, ultimately, how much policyholders pay for coverage. The number of auto glass AOB lawsuits statewide in 2013 was over 3,800; by 2017, that number had grown […]

“We went out again. We got maybe six steps before lights blared in our faces. It had crept up, big wheels barely turning on the gravel. It had been lying in wait and now it leaped at us, electric headlamps glowing in savage circles, the huge chrome grill seeming to […]

By Dr. Steven Weisbart, Chief Economist, Insurance Information Institute  Thursday’s announcement of escalating tariffs on Mexico could further squeeze auto insurers by making replacement parts more expensive. In an action to deter the flow of asylum-seekers on the southern border, President Donald Trump announced that the U.S. would impose escalating tariffs […]

By Dr. Steven Weisbart, Chief Economist, Insurance Information Institute  There is remarkable good news on the auto insurance front— auto insurance prices have been trending downward since February 2018, and are now below the general inflation rate, but no one seems to have noticed. The vast majority of consumers in […]

By James Lynch, Chief Actuary, Insurance Information Institute With automobile rating factors in the news, here at Insurance Information Institute we have been fielding a number of calls on the topic. Here is some background information. I testified May 1 before Congress, and rating factors were among the issues I […]

As we noted a few weeks ago, the Florida Senate has passed a bill designed to reform parts of the state’s insurance assignment of benefits (AOB) system. Governor Ron DeSantis has stated that he plans to sign the bill into law. (You can view the Senate version of the bill, […]

Insurance Journal reports that the Florida Senate has passed a bill designed to reform parts of the state’s insurance assignment of benefits (AOB) system. Governor Ron DeSantis has stated that he plans to sign the bill into law. Florida’s AOB system has long been in dire need of reform. As […]

Most people agree that honesty is the best policy, but when it comes to filling out insurance applications, many consumers are willing to fudge the truth to get a better rate. According to a study from finder.com, an estimated 35 million Americans have lied on an insurance application. Almost one […]

always scheming You may have read the recent story featured in the I.I.I. Daily about raccoon damage and homeowners insurance. The gist: raccoons got into a house and caused $80,000 worth of damage. The homeowners were surprised to learn that their insurance wouldn’t cover any of it. So what’s the […]

Ah, Florida. Home to sun-washed beaches, Kennedy Space Center, the woeful Marlins – and one of the most costly tort systems in the country. A significant driver of these costs is Florida’s “assignment of benefits crisis.” Today the I.I.I. published a report documenting what the crisis is, how it’s spreading […]