We’ve all seen the numbers. Growing dislocation between what consumers pay and expenses incurred by insurance carriers. Challenges accessing affordable insurance solutions. Consumers in Florida and Louisiana paying multiples more for insurance. Replacement materials suffering from run-away inflation. But don’t be fooled; these statements are about auto insurance, not homeowners insurance.
So why is there no national auto insurance crisis? In part because about 50 years ago the auto insurance industry established a risk management framework that started with data and ended with safety standards. In between were certain government mandates, narrowly targeted government risk pools and enough consumer demand that even Saturday afternoon truck ads are full of references to 4-star insurance safety ratings.
