When a policyholder is injured in an accident, the auto insurer usually pays retail prices for medical care. Should escalating costs be a surprise?
Madison, NJ (PRWEB) March 20, 2013
Auto insurance costs – already on an accelerating trend – could rise sharply in the years ahead, according to a new study released by Assured Research, a firm that analyzes the property/casualty insurance industry. In its new report, “Behind Auto Bodily Injury Severity,” the company concludes that auto insurers are facing two powerfully negative trends.
“When a policyholder is injured in an accident, the auto insurer usually has to pay retail prices for his or her medical care,” explains William Wilt, president of the firm. “And as healthcare economics shift in favor of ever-larger institutions, auto insurers may find they have less power to contain prices or utilization.” The age of accident victims is also rising—a dynamic that will magnify the effects of cost-shifting.
Assured Research’s report, which was prompted by a systemic rise in auto bodily injury severity reported by most auto insurers, is available for purchase at the firm's website. The report also explores more transient factors affecting insurance cost trends – the economy, auto safety features and laws, and the rising influence of the ambulance industry and trauma centers. On more secular trends, the firm concludes, “…when combined with the nation’s aging demographics, our society’s expansive view of healthcare utilization, and the reality that property/casualty insurers typically reimburse for procedures at higher rates than other forms of medical payers, should escalating costs be a surprise?”
Assured Research says consumers should prepare for rising costs in the years ahead. While auto insurers may enjoy top-line growth from rising prices, the research firm believes cost pressures will slow the pace of margin expansion. The adverse trends, according to Assured Research, are not going away anytime soon.
About Assured Research: Assured Research is a property/casualty insurance research firm with headquarters in Madison, New Jersey. The firm produces industry research analyzing financial, claim, and business development matters of relevance to insurance professionals. Subscribing clients include (re)insurers, consultants, and intermediaries.
This Assured Industry Study – Behind Auto Bodily Injury Severity – is available for purchase.
William Wilt, the president of the firm, is available for interviews. Write to him at william(dot)wilt(at)assuredresearch(dot)com or call (973)377-2908.