As carriers adjust to a new normal, it is imperative to track progress against the industry with timely, relevant data. Our data scientists examined loss trend data for January 2020 for collision and property damage coverages and updated the bodily injury numbers through August 2019 through an 180-day view. We base this information on claims paid and closed, at a coverage level, and within a specific window of time. The statistics provided below are all based on this internal research.
In January of this year, auto insurance carriers saw a 6.5% increase in collision severity compared to January 2019. This figure was down slightly from 6.8% in December 2019. Additionally, there was a 4% year over year increase in the number of collision claims paid and closed. “Three states saw the most significant increase in collision severity in January: South Carolina (10.6%), Arkansas (10.4%), and Oklahoma (10.3%),” said Reena Batra, Director of Claims Data Science for LexisNexis® Risk Solutions.
Property Damage Severity
At the beginning of this year, carriers saw an increase of 6.4% in property damage severity while the number of paid and closed claims decreased slightly by 0.3%. The January severity numbers are in line with December 2019 figures. “We saw that Alaska (12.4%), Hawaii (10.7%), and Rhode Island (9.6%) saw the largest increase in property damage severity year over year,” said Batra.
Bodily Injury Severity
In terms of bodily injury severity, insurance carriers saw a 7% increase as of August 2019, up from 6.5% in July 2019. The number of claims paid and closed in August 2019 also increased by 6.2% compared to August 2018. This number was up from the 5.9% increase seen in July 2019 .
During this time, LexisNexis Risk Solutions is committed to supporting the insurance industry with timely reporting of critical metrics. We hope that this data is helpful in navigating the current business landscape. In the video below, my colleague Bill Brower explains our approach and capabilities regarding benchmarking data.
Reach out to your LexisNexis Risk Solutions account representative for carrier-specific reporting on key performance indicators.*
*Expanded views are available for LexisNexis® Claims Discovery users.