Personal lines trends: 2018:Q1

Personal auto

• The chart shows: The blue line is the number of miles Americans have driven over the preceding 12 months. The green line is collision frequency over the preceding 12 months.
• The back story: As people drive more miles, they get in more accidents.
• The takeaway: Strong employment numbers mean no respite likely in accident rates.

Driving patterns predict claim frequency

 

2018_1stquar_driving.jpg

Sources: Federal Highway Administration; Rolling four-quarter average frequency from Fast Track Monitoring System; Insurance Institute for Highway Safety; Insurance Information Institute.

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Homeowners and renters

• The chart shows: The green line is the number of owner-occupied residences. The blue line is the number of rentals.
• The back story: Growth in homeownership drives HO premiums, while rental growth drives the (considerably smaller) rental market.
• The takeaway: There are slight signs that millennials are finally moving out of rentals and into owned homes. HO premium growth should benefit.

To rent or to buy?

 

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Sources: U.S. Census Bureau at http://www.census.gov/housing/hvs/data/histtabs.html, Table 8; Insurance Information Institute.

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