March saw no significant change in severity trends for Collision and Property Damage claims, despite COVID-19. Upward Trends for Collision and Property Damage claims severity have continued at more than 6% over March 2019. It will be interesting to see if April brings similar results as carriers continue to move their staff to a predominantly virtual claims environment.
Note: Our data scientists examined loss trend data for March 2020 for Collision and Property Damage coverages and updated the Bodily Injury numbers through October 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 calculated with 12-month rolling averages on this internal research.
In March 2020, auto insurance carriers saw a 6.5% increase in Collision severity compared to March 2019. This figure was up slightly from the 6.3% increase seen in February 2020. Based on a 12-month rolling average, there was a 0.1% year-over-year increase in the number of Collision claims paid and closed, down from the 3.2% increase in February 2020. “This month, we focused on three states that registered increases in collision severity as follows: California (6.9%), New York (6.4%), and Texas (7.7%),” said Reena Batra, Director of Claims Data Science for LexisNexis® Risk Solutions.
Property Damage Severity
In March of this year, carriers saw growth of 6.6% in Property Damage severity. Based on a 12-month rolling average, the number of paid and closed claims were down 2.4% compared to 2019. The March severity numbers are up slightly from the 6.5% growth seen in February 2020. “ Year-over-year, property damage severity rates increased in California (5.7%), New York (6.5%), and Texas (6.4%) ,” said Batra.
Bodily Injury Severity
In terms of Bodily Injury severity, insurance carriers saw a 7.0% increase as of October 2019, up slightly from 6.9% in September 2019. The number of claims paid and closed also increased by 6.8% from October 2018 to October 2019.
LexisNexis Risk Solutions is committed to supporting the insurance industry with timely reporting of critical metrics. 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.
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