The BLS released March CPI data that included a spike in auto price inflation to 1.1%. We expect this is likely to prove an aberration given the change in loss-trend drivers in recent months.
Through its ability to apply rapid response stress tests on the entire P&C market, AM Best has an asymmetrical advantage over other commentators when it comes to real time market-sourced information.
Progressive included a 20% rebate for commercial lines customers with BOP and GL policies – potentially the first indication of rebates spreading from auto to small commercial customers.
Geico has raised the stakes in the arms race on customer rebates. Unlike other carriers to date, its plan is structured to more explicitly motivate retention, attract new business and protect float.
Yesterday, Allstate and American Family announced a plan to partially refund personal auto premiums. We expect these to be the opening bids in a protracted battle with regulators.
