OLDWICK, N.J.--(BUSINESS WIRE)--The October issue of Best's Review looks at the auto insurance sector, where repair costs and bad driving habits have led to more than $30 billion in underwriting losses for private passenger auto insurers in 2022.
Average repairs costs have steadily increased for many years. David Blades, associate director, industry research and analytics at AM Best, says that although the auto sector has performed well historically, new equipment in newer automobiles has driven up the cost of repairs and helped increase losses in 2022. However, some insurers and analysts attribute the need for these repairs to an apparent increase in reckless driving habits, which surged 23% since the beginning of the COVID-19 pandemic. Read further in “What’s Driving the Rise in Auto Costs.”
Best’s Review is AM Best’s monthly insurance magazine, covering emerging issues and trends and evaluating their impact on the marketplace. The complete content of Best’s Review is available here.
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