This month’s post reviews claims data from February 2020. While Collision and Property Damage severity increased at a rate similar to January, Bodily Injury severity has flattened as of September 2019. We expect to see more substantial movement in Collision and Property severity as we examine data for March and April over the next few months – evaluating the early impacts of COVID-19 on loss trends.
Note: Our data scientists examined loss trend data for February 2020 for Collision and Property Damage coverages and updated the Bodily Injury numbers through September 2019 through a 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 February of this year, auto insurance carriers saw a 6.3% increase in Collision severity compared to February 2019. This figure was down slightly from the 6.5% increase seen in January 2020. Additionally, there was a 3.2% year-over-year increase in the number of Collision claims paid and closed, down from the 3.9% increase in January 2019. “Three states we are focusing on this month include California, New York, and Texas which all increased in collision severity in February as follows: California (6.5%), New York (6.1%), and Texas (7.4%),” said Reena Batra, Director of Claims Data Science for LexisNexis® Risk Solutions.
Property Damage Severity
This February carriers saw growth of 6.5% in Property Damage severity while the number of paid and closed claims remained flat year-over-year. The February severity numbers are up slightly from the 6.4% growth seen in January 2020. “We saw our focus states with increases, including California (5.1%), New York (6.9%), and Texas (6.1%),” in Property Damage severity year-over-year,” said Batra.
Bodily Injury Severity
In terms of Bodily Injury severity, insurance carriers saw a 6.9% increase as of September 2019, down from 7.0% in August 2019. The number of claims paid and closed also increased by 6.7% from September 2018 to September 2019.
LexisNexis Risk Solutions is committed to supporting the insurance industry with timely reporting of critical metrics. Be sure to watch for our March 2020 Collision and Property Damage results in early June.
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.