OLDWICK, N.J.--(BUSINESS WIRE)--In this AMBestTV episode, Raymond Thomson, director, and Samuel Hanig, senior industry research analyst, AM Best, said results for personal automobile insurers will in part depend on gas prices, employment levels and medical costs. Click on http://www.ambest.com/v.asp?v=personalauto419 to view the entire program.
AM Best believes innovation is critical to insurers’ long-term success and that they must use it to maintain market relevance. Thomson addressed the issue of whether smaller market participants will be able to keep up with larger ones.
“Today, the larger insurers are getting really technologically advanced in the use of data in their analysis and pricing,” said Thomson. “This promotes a challenge for smaller companies, but they can bring other things to the table. Their localized knowledge and experience, as well as value-added services, with the idea that you know your agent as opposed to you know your computer. These are some of the things that can keep the smaller automobile writers in the game.”
Hanig highlighted personal automobile insurers’ recent positive performance and if the results are sustainable.
“The early indicators suggest that is going to be the case. Certainly, 2017 was a strong rebound year, and 2018, from the data that we have seen so far, shows improvement as well. As long as insurers are current and aware of their own data trends, as well as the macro-level trends impacting their industry, they should be able to be preserve their performance for at least the short term,” said Hanig.
To access a copy of this special report, titled, “Personal Auto Insurers Regain Traction as Combined Ratio Improves,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=284058.
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