Research
EV Sales Growth Slowed in the U.S. During First Quarter
Market share growth rate of electric vehicles was up slightly in first quarter from last year, but down on fourth quarter of 2023.
Electric vehicle (EV) sales growth in the U.S. continues to slow, according to sales data analyzed by Kelley Blue Book. In the first quarter of 2024, Americans bought 268,909 new electric vehicles, according to Kelley Blue Book counts. EV share of total new-vehicle sales in Q1 was 7.3%, a decrease from Q4 2023.
While annual EV sales continue to grow in the U.S. market, the growth rate has slowed notably. Sales in Q1 rose 2.6% year over year, but fell 15.2% compared to Q4 2023. The increase last quarter was well below the previous two years.
In Q1 2023, EV sales volumes were up 46.4% year over year and 15.5% quarter over quarter. In Q1 2022, EV sales were higher by 81.2% year over year and 20.4% higher than the previous quarter.
Cox Automotive forecasts EV sales in the U.S. to increase year over year in 2024, making this year the best year ever for EV sales. Analysts expect EV sales to reach roughly 10% of the market by the end of the year, up from 7.3% in the first quarter.
“Electric vehicle sales in the U.S. declined during Q1 2024 – the first quarter-over-quarter downturn since Q2 2020,” said Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive.
Cities with the Highest Insurance Fraud Incidence in 2023
Insurance fraud, a costly issue leading to an estimated $80 billion in losses annually, has been meticulously analyzed to identify the U.S. cities most plagued by this challenge.
Utilizing data on white-collar crimes, state fraud laws, and scam call frequencies, The Zebra has highlighted the cities where residents are most impacted by insurance fraud activities. Atlanta, Georgia, stands out as the city most affected due to its high volume of scam calls and significant rate of white-collar crimes, compounded by Georgia’s minimal fraud-related legislation.
The study also spotlights Raleigh and Richmond, tying for second, each with distinct reasons for their rankings but similarly limited by state-level legal frameworks to combat fraud. Charlotte and Detroit share the fourth position, demonstrating considerable white-collar crime rates and experiencing a high number of scam calls.
Other cities making the list include St. Louis, Virginia Beach, Chicago, Las Vegas, and Dallas, each with unique challenges ranging from scam call frequencies to the severity of white-collar crimes.
Texas’s Dallas, despite its high white-collar crime rate and scam call volume, stands out for having three anti-fraud laws, suggesting a more robust legislative approach to tackling insurance fraud compared to other cities on the list. The findings underscore the geographical disparities in insurance fraud prevalence and the varied effectiveness of state laws in addressing the issue.
A New Way For Insurers to Accurately Assess Non-Weather Fire Risk
Thirty years ago, we had seventeen minutes to escape a fire. Today, we only have three minutes. This is the result of the widespread use of petroleum-based products and furnishings in homes and commercial buildings including for example carpets, drapes, furniture foams, and piping.
Combining this with recent changes in construction including for example the use of manufactured trusses means that fire spreads from room to room much more easily than it did decades ago. If the fire department does not arrive within three minutes of the start of a fire spread, there will likely be a massive loss.
Insurance Journal
News
Soaring insurance costs hit as US buyers get a break on car prices
A new form of sticker shock has hit American car buyers like Darin Davis.
In January, when the 56-year-old Dallas real estate agent renewed the insurance on the pearly-white 2024 Cadillac XT4 that he bought just a few months earlier, the rate nearly doubled.
"It takes the fun out of owning a new car when you’re paying so much money," said Davis, adding that if he’d known such a massive increase was coming, he might have opted for a less expensive model. But by then it was too late.In one of the cruel twists of an inflation-weary U.S. economy, car prices are coming down after surging by record amounts during the COVID-19 pandemic.
But at least part of those gains for consumers are getting gobbled up by rising auto insurance rates that for some models now account for more than a quarter of the total cost of owning a vehicle.
Car prices have eased as the supply chain snarls of the pandemic--especially shortages of vital computer chips--have untangled and automakers boost inventories on their lots. Meanwhile, factors including rising costs associated with repairing increasingly complicated vehicles and more storm damage amid climate change is pushing insurance rates higher.
Cheap Auto Insurance Is a Thing of the Past. Here Are Five Reasons Why - Bloomberg
The cost of auto insurance in the US rose more than 22% in the 12 months that ended in March, the biggest annual jump since 1976.
Rates are up 43.7% since January 2020, making car insurance premiums one of the bigger contributors to high inflation. Here’s why:
USAA announces layoffs
Furthering the continuing trope of industry layoffs, USAA has announced the elimination of 220 positions as part of adjustments to align with evolving business demands, a company spokesperson confirmed.
Roger Wildermuth, spokesperson for USAA, declined to specify which roles are affected by the cuts. However, he noted that the company is actively hiring and has filled approximately 2,900 positions so far in 2024.
Wildermuth emphasized that the changes were necessary to maintain the health of the business and to ensure that the company continues to deliver competitive pricing to its members.
As part of the reductions, USAA said that it will provide support to the affected employees to assist them in finding new employment opportunities, both within and outside the company.
Climate/Resilience/Sustainability
How Insurers are Driving Sustainability Agenda | Capgemini
Sustainable Insurance argues that insurers are positioned to meet the changing demands of consumers as sustainable practices become key differentiators in an increasingly competitive insurance landscape.
The frequency and severity of natural catastrophes is increasing steadily. The cause, of course, is climate change. The financial impact on the insurance industry has been significant, with assets valued in their trillions put at risk from flooding, hurricanes, wildfires, drought, and more.
Insurers must take action fast. We are already seeing non-traditional players disrupting the property and casualty (P&C) market. In some instances, programs are underway or planned specifically targeting natural catastrophe recovery, with leaders shifting investments into risk modeling and sustainable funds.
As consumers become more environmentally conscious, insurers and their evolving policy offerings can contribute to the way people and communities recover from climate-related disaster and to society’s overall climate resiliency. Our new report Sustainable Insurance argues that insurers are positioned to meet the changing demands of consumers as sustainable practices become key differentiators in an increasingly competitive insurance landscape.
AI in Insurance
The Ethics of AI in Commercial Insurance: How to Approach this Revolutionary Technology Responsibly
From confronting biases inherent in data to ensuring transparency and regulatory compliance, stakeholders must proactively address these challenges to foster responsible AI development and deployment within the commercial insurance sector.
In the landscape of the insurance industry, the integration of artificial intelligence (AI) and machine learning technologies has become instrumental in enhancing operational efficiency and decision-making processes, from underwriting to claims and anywhere in between.
According to a recent Conning survey, 77 percent of C-Suite insurance decision makers noted they are adopting the technology to some degree.
However, the profound impact of AI adoption is accompanied by a host of ethical considerations that necessitate thorough examination and strategic navigation. From confronting biases inherent in data to ensuring transparency and regulatory compliance, stakeholders must proactively address these challenges to foster responsible AI development and deployment within the commercial insurance sector.
Leandro DalleMule, Global Head of Insurance and General Manager for Planck
Data Privacy
Automakers and FCC square off over potential regulations for connected cars
Car manufacturers and the Federal Communications Commission (FCC) are gearing up for a potential fight over whether connected cars should be regulated as small pieces of telecom infrastructure — a decision that would have vast implications for how vehicles handle consumer data.
In recent letters obtained by Recorded Future News, automotive companies pushed back against inquiries from FCC Chairwoman Jessica Rosenworcel about whether everyday vehicles are so technologically advanced that they might be subject to new regulations.
Rosenworcel’s inquiries come at a time when connected cars are under increasing scrutiny, with lawmakers imploring another agency, the Federal Trade Commission (FTC) to regulate the industry. Recent news reports have also revealed how law enforcement uses data supplied by car companies without driver consent, how connected cars facilitate stalking and how auto manufacturers sell driver information to data brokers who in turn sell it to insurance companies.
Congress should pass digital privacy bill crafted by WA leaders | The Seattle Times
No federal law regulates what companies can collect from customers, and how they use it. Washington lawmakers are leading an effort to change that.
If this is the year Americans finally gain control over what happens to their digital data, they’ll have two longtime Washington lawmakers to thank.
Last Sunday, U.S. Sen. Maria Cantwell, D-Wash., and Rep. Cathy McMorris Rodgers, R-Spokane, unveiled a bipartisan compromise that would establish data privacy as a consumer right. The leaders of powerful committees — Cantwell as chair of Senate Commerce and McMorris Rodgers, her equivalent on House Energy and Commerce — believe the American Privacy Rights Act has a shot to pass in divided government and survive in a dysfunctional era of Congress.
Their efforts are the best chance at the federal level to give consumers rights over the use of their personal data and limit what companies can collect and do with it — a cause with many backers on Capitol Hill. With McMorris Rodgers’ pending retirement at the end of this year, it’s also their last opportunity to try and push the legislation over the finish line.
The heart of their compromise appears to be the right of consumers to sue when companies violate digital privacy, something supported by Cantwell, and the act’s power to eliminate a confusing patchwork of state laws and establish federal standards on rules and protections, insisted on by McMorris Rodgers. The pair said in a statement the legislation “strikes a meaningful balance on issues that are critical to moving comprehensive data privacy legislation through Congress.”
Whatever their differences, lawmakers from both parties should embrace this chance to protect consumers while reining in Big Tech.
Canada
2023 P&C financial results return to Earth
Gravity brought financial results for Canada’s property and casualty insurance industry back down to Earth in 2023, despite a rebound to pre-pandemic investment returns.
“As we predicted last year at this time, the abnormally high industry returns for 2021 and 2022 began to return to historically average levels in 2023,” retiring Property and Casualty Compensation Corporation (PACICC) board chairman Glenn Gibson said at PACICC’s AGM in Toronto Thursday.
The industry grew its premiums by 8% in last year and was buoyed by a big swing in investment income since 2021, thanks in part to higher interest rates in 2023, Gibson said.
Even so, the industry reported a $94-million underwriting loss in 2023. The 9.1% increase in insurance service expenses (which include claims costs) didn’t help.
EMEA
Europe’s Wildfires in 2023 Were Among Worst This Century: Report
The 2023 wildfire season in the Europe was among the worst this century, according to a European Commission report published on Wednesday.
Last year, more than half a million (504,002) hectares, an area twice the size of Luxembourg, was scorched by wildfires, according to a report on Forest Fires in Europe, Middle East and North Africa 2023 by the Commission’s Joint Research Centre.