Insights

Part 1: Revenue Pressure and Preservation

In this document, we explore COVID’s impact on auto insurance revenue through state mandates, premium givebacks, increased bad debt, and potential issues around increased uninsured motorists, reduced coverages, and reduced retention.

Part 2: Impact by Market Segment

Here we explore the uneven impact of the economic downturn and resulting unemployment on each market segment. Across market segments, each company’s starting point and financial condition will influence their performance.

Part 3: Impact by Primary Channel

Part 3 overlays COVID’s impact by distribution channel on the effects to revenue and market segment.  Changes to consumer behaviors and the acceleration of existing patterns present all companies with substantial challenges.

Part 4: Pricing & Underwriting Challenges

Part 4 considers the impact on all of the prior analysis on auto insurance pricing and the dramatic impact this may have on market conditions and individual insurance carriers.