Personal Auto Rate Hikes Not Keeping Up with Losses: Fitch

March 30, 2017

  • March 31, 2017 at 2:15 pm
    Agent says:
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    State Farm modelers didn’t get their algorithms right and had a $7 Billion loss on Personal Auto.

    • May 23, 2017 at 4:31 pm
      Debra says:
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      We live in Phoenix and our policy increased 20%, it’s a joke. We are switching immediately to another provider.

  • April 3, 2017 at 11:07 am
    Observor says:
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    My guess is that lower gas prices along with an improved economy are increasing exposure without corresponding pricing adjustments. Auto insurers benefited from the recession followed by higher oil prices a few years ago. The challenge with some modeling algorithms is that they may not have enough specific data to go back 10 to 15 years to account for changes in economic cycles.

    • April 3, 2017 at 2:52 pm
      Agent says:
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      The agorithms also don’t account for cell addicted drivers who talk and text at the same time.

      • April 3, 2017 at 6:18 pm
        okt0ber says:
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        Smart phones have been around for years now. The problem is more cars on the road, so people who have always text and driven now have less response time, which is leading to more accidents. It’s a combination of both, not just one or the other.

        • April 7, 2017 at 5:09 pm
          Agent says:
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          The young man texting and driving in Texas killing 13 senior citizens in a van was weaving all over the road prior to the accident. He obviously couldn’t handle it. He did apologize, but it was a bit too late.

  • April 10, 2017 at 10:35 am
    Eddie Hall says:
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    I don’t understand. Credit scoring is supposed to be an accurate predictor of who will have a claim and who won’t.



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