FINDINGS

AVERAGE COST OF AUTO INSURANCE

• 2009: $786.65
• 2010: $789.29
• 2011: $795.01
• 2012: $812.40
• 2013: $838.61
• 2014: $865.46
• 2015: $889.09
• 2016: $935.80

LOSS RATIO

• 2009: 71.24%
• 2010: 70.05%
• 2011: 71.90%
• 2012: 71.51%
• 2013: 71.01%
• 2014: 72.45%
• 2015: 75.29%
• 2016: 78.73%
• 2017: 75.57%
• 2018: 71.92%

PRIVATE PASSENGER AUTOMOBILE NET PREMIUMS WRITTEN

• 2009: $94.99 billion 
• 2010: $97.67 billion
• 2011: $100.37 billion
• 2012: $103.43 billion
• 2013: $107.45 billion 
• 2014: $112.35 billion 
• 2015: $116.31 billion 
• 2016: $124.44 billion
• 2017: $133.75 billion 
• 2018: $144.44 billion 

• 2009: $62.63 billion 
• 2010: $62.60 billion
• 2011: $62.95 billion
• 2012: $64.62 billion
• 2013: $67.45 billion 
• 2014: $71.10 billion 
• 2015: $76.49 billion 
• 2016: $82.93 billion
• 2017: $88.49 billion 
• 2018: $96.47 billion 

AUTO INSURANCE LOSSES

• 2009: $112.30 billion 
• 2010: $112.28 billion 
• 2011: $117.43 billion 
• 2012: $120.18 billion 
• 2013: $124.19 billion 
• 2014: $132.91 billion 
• 2015: $145.15 billion 
• 2016: $163.26 billion 
• 2017: $167.95 billion 
• 2018: $173.26 billion 

PASSENGER VEHICLE COLLISION COVERAGE INSURANCE LOSSES

• Claim frequency: 7.4 
• Claim severity: $5,573 

• Claim frequency: 6.9 
• Claim severity: $4,245 

RESEARCH STRATEGY

Cloud Computing

• According to a 2012 Gartner survey, cloud computing was a top IT priority of CIOS among property & casualty insurers that included auto insurers in the industry.
• Another 2012 Gartner survey found that 41% of the insurers surveyed were already using cloud computing productively and 41% were developing and planning to implement cloud computing within the next 6-12 months.
• In 2012, cloud computing was in the development and implementation "trigger stage", with 5 to 10 years to widespread adoption.
• The auto insurance industry was encouraged to continue to develop and implement cloud computing in 2014, to reap the benefits of offering their customers self-service platforms to report and check the status of their claims online, chat live with agents, choose auto repair facilities, and schedule rental cars.
• Telematics is currently being further developed and implemented within the auto insurance industry that uses cloud computing by installing a device in cars that records metrics like speed, distance, and the type of road a customer is traveling on. This device also monitors the braking pattern and driving style, which is utilized by insurance companies to accurately compute the premium.
• It has been estimated that 70% of US auto insurers will be using telematics usage-based insurance by 2020.

Dashboard Cameras

• The US auto insurance industry has offered zero discounts over the past ten years for customer use of dashboard cameras.
• In 2015, the reasoning of top US auto insurers to explain not including the cost and impact of dashboard cameras in their premiums was that dashboard cameras do not prevent accidents from happening, and there is no evidence that they make people better drivers, so why would there be a discount?
• In 2018 there was still uncertainty by US auto insurers if dashboard cameras are really cost-effective and will have a positive impact on their industry because such footage could help or hurt them in legal proceedings.
• US auto insurers are now willing to review the dashboard camera footage of their customers, but they do not have any standard policies regarding reviewing or accepting such footage.
• There is currently one state in the US, New York state, that is attempting to pass legislation that would make it mandatory for the auto insurance industry to offer a 5% discount for drivers who use dashboard cameras.

Autonomous Vehicles

• Google and Vislab introduced autonomous vehicles in 2013.
• In 2015, it was estimated that autonomous vehicles would significantly lower costs for the US auto insurance industry because 90% of accidents were caused by human driver error and accident frequency could drop as much as 80%.
• The auto insurance industry began to build an employee base of AI engineers, data analysts and robotics specialists in 2018 who can help them develop products that will empower them to remain relevant in the autonomous vehicle marketplace.

Ridesharing

• Ridesharing nearly tripled in the United States from 2011-2016.
• The dramatic rise in ride sharing in the United States was determined to likely begin to impact the auto insurance industry in 2016 with lowered costs from a decrease in the frequency and severity of losses, changes to auto repair and replacement costs, new customer groups, and new insurance products to meet their needs.
• Ride sharing in the United States increased another 15% from 2015 to 36% in 2018. 
• The US auto insurance industry is currently developing ride sharing policies to fill gaps in coverage for personal auto insurance policies with auto insurers filling these gaps differently.

Research Strategy

Amnesia

• There are two types of amnesia: anterograde amnesia and retrograde amnesia.

• The most frequent type of amnesia is anterograde amnesia. People who suffer this type of amnesia are not able to form new memories or learn new information after the accident for some time.

•  Retrograde amnesia is less common and involves the loss of memories that were formed before the traumatic event occurred. Typically, those suffering from retrograde amnesia can remember events that happened in the distant past, while struggling to recall what happened recently. For example, a person may know who the president was a decade ago but not know who the current president is.

• The period that someone forgets before the accident may be anywhere from minutes to a few months.

• Doctors use a variety of tools to diagnose amnesia; they can perform physical checks, which test balance, reflexes, and sensory function. There are also memory evaluations that test a person's general knowledge, as well as diagnostic tests, such as MRI and CT scans that show physical damage.

•  Occupational therapy and technological assistance are two tools that people use to cope with amnesia

Post-Traumatic Stress Disorder (PTSD)

• PTSD is a mental health condition that occurs when someone witnesses or experiences a terrifying event that involved the risk of serious injury, violence, or death. A person can be diagnosed with PTSD if symptoms continue more than a month after the event.

•  About 9% of people involved in traffic accidents develop symptoms of PTSD within a year of the accident. It can affect drivers, passengers, and witnesses.

•  Symptoms of PTSD include intrusive memories (such as flashbacks), avoidance of anything associated with the event, negative changes in mood or thinking, and changes in reaction (either physical or emotional).

• Victims can over-remember traumatic events, which in time leads to an increase in PTSD symptoms.

• There are a range of treatment options for PTSD. Types of psychotherepy such as cognitive therapy, exposure therapy, and EMDR (eye movement desensitization and reprocessing) are available, as are antidepressants and anti-anxiety medications.

Acute Stress Disorder (ASD)

•  Acute stress disorder (ASD) is a condition that develops in people who have experienced or been exposed to traumatic events and may go on to experience PTSD. As such, symptoms last between three days to one month.

•  Five to 20 percent of people exposed to a traumatic event have ASD, of which about half develop PTSD.

•  A 2018 meta-analysis of multiple ASD studies concluded that one sixth (about 15%) of those who survive traffic accidents will have ASD.

•  Symptoms of ASD are similar to those of PTSD, and include avoidance of traumatic memories, intrusive memories/dreams, negative moods, disassociative symptoms, and arousal (e.g. difficulty sleeping or concentrating).

• Cognitive behavioral therapy, stress-reduction techniques, and psychotropic medications are all options for treating ASD.

Traumatic Brain Injury (TBI)

•  Traumatic brain injury can occur when a person suffers a violent blow to the head or a sever jolt. Mild TBI has temporary symptoms, while more serious TBI may have long-term complications.

• TBI can damage areas of the brain that form new memories and allow a person to recall old ones.

•  Symptoms of mild TBI include memory loss and difficulty concentrating nausea, dizziness, and mood changes. Moderate to severe cases of TBI include all of the above, in addition to symptoms such as loss of consciousness convulsions, and profound confusion.

• While mild cases of TBI require only rest and over the counter painkillers, serious cases demand more invasive treatments. These include anti-seizure and coma-inducing drugs, surgeries to repair the skulls or improve blood flow in the brain, and a range of rehabilitation specialists.

Impact of Memory Loss on Vehicle Claims

• According to the law firm Slappy & Sadd, the short term memory loss and recall difficulties that can result from traffic accidents impact victims both because of the type of injury and subjective nature of the injury. Additionally, people may feel ashamed and reluctant to admit memory loss to themselves and others. Consequently, short term memory loss may impact vehicle claims because victims might not remember exactly how the accident occurred, or if they do they will not necessarily disclose it when making a claim

Research Strategy