On Wednesday, the BLS released June CPI data, which included -10.1% personal auto premium inflation. The figure is up from -14.3% in May and remains at levels not seen since at least January 1999.
Since the Covid-crisis began, we have argued that the most likely outcome for P&C carriers is a get out of jail free card on loss trends due to lower frequency.
With all P&C major target asset classes up in Q2, carriers are set to report substantial book value gains from investments, reversing the balance sheet hit from the previous quarter.
As we enter July, we revisit the work we’ve been doing every month to measure the observable decline in auto accidents by compiling data from real-time state traffic accident databases.
