Research
Collision Claims for Battery Electric Vehicles Shrink for the First Time in the U.S. While Hybrid Claims Surge
Mitchell, a leader in the development of innovative auto physical damage technology solutions, today announced the release of its latest Plugged-In: EV Collision Insights report.
The Q2 2025 edition examines the decrease in collision claims frequency for repairable battery electric vehicles (BEVs) in the U.S. and increase in mild hybrid electric vehicle (MHEV) claims across North America. It also explores how changes to government incentive programs are impacting consumer adoption of BEVs on both sides of the border.
"We're experiencing a significant shift in the electric vehicle landscape as the number of BEV claims in the U.S. dropped for the first time last quarter by 7%," said Ryan Mandell, Mitchell's vice president of strategy and market intelligence.
"This decline coincides with a 6% year-over-year reduction in new BEV purchases despite strong sales in early 2025. Meanwhile, claims for MHEVs continue to rise, reaching approximately 5% in the U.S. and 4% in Canada. That is a jump of 2% and 9% respectively over the previous quarter and 21% and 29% over the previous year."
IAA Examines Negative Equity and Depreciation Trends
Summary
IAA's Q2 2025 Negative Equity Depreciation Article reviews recent negative equity and depreciation trends relative to salvage vehicles. We present two main findings based on the Q2 2025 data
Complex total loss cases remained elevated in Q2 2025, with negative equity transactions holding at a record-high 52.1%, extending a multi-year upward trend. Q2 2025 salvage values depreciated at a slower rate across the board, reversing a 2-quarter accelerating depreciation trend.
Introduction The used car market has gone through dramatic trends over the last five years. Higher interest rates, supply chain complexities, elevated insurance costs, and shifts in consumer preferences have all been factors. As an online vehicle marketplace that also includes digital solutions that support our customers, IAA is uniquely qualified to evaluate trends within the used car and salvage vehicle markets. Using a data-driven approach, this article takes a deeper look at the current state of negative equity and salvage vehicle depreciation.
We’ve observed an increased negative equity trend every year since IAA Loan Payoff’s inception, and Q2 2025 was no exception. For Q2 2025, we saw the share of negative equity transactions hold steady at 52.1%, which remains at a three-year high. IAA observed negative equity transactions increase by 12.2% from 2022 to 2023 and increase by 8.6% from 2023 to 2024. FULL REPORT
Financial Results
Progressive reports July earnings with 34% net income increase
The Progressive Corporation (NYSE: PGR) reported net income of $1.09 billion for July 2025, representing a 34% increase from $814 million in the same month last year, according to the company's monthly earnings statement.
Net premiums written rose 11% to $7.06 billion compared to $6.38 billion in July 2024. Net premiums earned increased 15% to $6.99 billion from $6.07 billion in the prior year period.
GM National Insurance Company releases Q2 2025 results
GM National Insurance Company, the licensed carrier that’s part of General Motors, published its Q2 2025 results.
The carrier ended the period with $22 million in written premiums, a 220% increase compared to the same period last year. Below is the premium breakdown by state.
The carrier reported a net underwriting loss of $33 million for the first six months, a 25% increase compared to the same period last year.
Earlier this month General Motors began offering coverage in Florida and it is currently live in 18 states.
Clearcover Insurance Company reports Q2 results
Clearcover Insurance Company, the carrier subsidiary of car insurance startup Clearcover, has released its Q2 2025 results, ending the period with $63 million in direct written premiums, a decrease of 18% compared to Q2 2024.
The carrier reported a net underwriting loss of $8.5 million during the first six months of the year, a 51% reduction from the $17.4 million loss in the same period last year.
Combined ratio was 145% for the first half of the year, an improvement of 9 percentage points compared to the same period last year.
AI in Insurance
AI Issues in the Commercial Auto Policy: The Insurer’s Perspective
The introduction of artificial intelligence into commercial vehicles has revolutionized the insurance marketplace.
Conventional thinking runs that this technology will be beneficial for insurers. For example, AI-enhanced dash cameras have the ability to spot distant vehicles and road obstructions far better than the naked eye. This allows for fleet operators to quickly deploy mitigation techniques, such as braking and gear-shifting, thus avoiding serious accidents.
Additionally, predictive maintenance sensors exist to alert drivers and technicians of pending feature failure. Deployment of these sensors may reduce costly maintenance downtime and improve vehicle safety on our highways.
The use of AI in commercial cabs is not solely to prevent accidents: it also optimizes delivery routes and personalizes customer relationships. However, these uses invoke varying risks. Specifically, claims for improper data handling or retention practices are on the rise. Concerns also exist over AI-enhanced equipment malfunction or breakdown.
As far as lawsuits are concerned, as more commercial vehicles are outfitted with these advanced features, apportionment of liability will take center stage. Will the standard Insurance Services Office (ISO) commercial/business auto policy continue to provide adequate protection to policyholders?
Emerging Liability Questions
The short answer: not necessarily. MORE
Climate/Resilience/Sustainability
'It's escalating': Munich Re Specialty cautions of billion-dollar hail threat
When it comes to natural hazards, few perils strike with the frequency, cost, and destructive power of hail. According to recent data, hail damage accounted for 50% to 80% of claims filed due to thunderstorm-related losses, causing an estimated $10 billion in property damage across the US each year.
For Bryan Wood, meteorologist and catastrophe analyst at Munich Re Specialty, the data really speaks for itself. “Hail is the costliest sub peril of severe convective storms, compared to tornado and wind,” he told IB. “It’s also escalating in its frequency as well. We're seeing the cost of roofing materials jump up in the US by around 18% since 2020 - so it's a complex problem.”
And while hail can strike anywhere, some US states bear the brunt. As Wood told IB, Texas is by far the most prone to these storms - after all, it’s in the middle of the meteorologically favorable area for production of hail. Other hail-prone states include Kansas, Oklahoma, Nebraska, and Missouri - together forming what meteorologists often call ‘hail alley’.
Announcements
W.R. Berkley forms new business for professional liability and casualty solutions
Berkley Edge will provide solutions for businesses that typically encounter difficulties in securing insurance coverage due to the nature of their risks.Insurance holding company W. R. Berkley has established a new business, Berkley Edge, to deliver professional liability and casualty insurance to small and mid-sized enterprises.
Berkley Edge will provide solutions for businesses that typically encounter difficulties in securing insurance coverage due to the nature of their risks.
The distribution of Berkley Edge's insurance products will be conducted through wholesale brokers.
W. R. Berkley CEO and president W. Robert Berkley, Jr. said: “We are deepening our commitment to the excess and surplus lines market by creating a sustainable platform tailored to small and mid-sized businesses with particularly challenging risk profiles.
“Demand for professional liability and casualty solutions in this segment continues to grow, and Berkley Edge is positioned to deliver responsive, targeted coverage with exceptional service. Jamie is a proven leader whose expertise and vision will be instrumental in delivering a compelling value proposition to our clients and broker partners. We are excited to welcome her to the team.”
Hertz to sell used vehicles online through Amazon Autos partnership
[Ed. Note: This follows the recent announcement that Amazon will sell new Hyundai cars. Could Amazon try again with personal auto insurance, other new car brands and bundling them together?]
Key Points
- Hertz will start selling pre-owned cars on Amazon Autos, a move meant to bolster the car rental company’s retail operations as it looks to bring in more profits.
- Customers who live within 75 miles of four major cities — Dallas, Houston, Los Angeles and Seattle — can start browsing for Hertz cars on Amazon as soon as Wednesday.
- Hertz said it sells hundreds of thousands of vehicles per year, in addition to running its signature car rental business.
Telematics, Driving & Insurance
Roamly’s Carshare insurance goes fully AI-powered
Roamly, an innovative InsurTech company specializing in AI-powered insurance solutions for shared mobility and fleet management, has launched its AI-powered Carshare insurance platform.
The new product addresses a major barrier for fleet operators, where insurance often represents their largest operational expense. Roamly aims to simplify coverage while helping operators scale efficiently, according to InsurTech Insights.
Roamly develops AI-driven insurance products using machine learning, telematics, and generative AI. The company recently won the Celent Innovation Execution Award for its proprietary Actuarial Rater™ and became a Lloyd’s of London Coverholder, expanding its global underwriting reach.
The Carshare platform, already covering 7,000 vehicles nationwide, is the first commercial vehicle insurance fully embedded in a fleet management SaaS tool. It allows operators to manage fleets, take direct bookings, and optimise revenue while meeting state-level compliance requirements. Roamly expects to cover more than 12,000 vehicles by the end of 2025.
The platform integrates with marketplaces and mobility providers, automating claims, underwriting, and real-time risk assessment across multiple use cases, including carsharing, ridesharing, personal use, and idle periods.
Webinars/Podcasts/Interviews
The value of technology partnerships in insurance | Digital Insurance
[Ed. Note: Highly Recommended]
Welcome to this edition of the DigIn Podcast. I'm Patti Harman, editor in chief of Digital Insurance. There were approximately 1500 InsurTech firms in the United States in 2024, and this number is only expected to increase as entrepreneurs explore opportunities to transform every aspect of the insurance industry.
The adoption of AI is also creating new opportunities for insurers to incorporate even more technology into their processes and procedures. What pain points are these firms solving for insurers? Where are they finding funding and how are they collaborating across the insurance industry? Joining me today to discuss all of this and much more is Astrid Malval-Beharry, founder and president of Strat Maven, a strategy consulting and advisory firm that specializes in that important intersection between P&C insurance and technology.
Thank you so much for joining us on the DigIn podcast, Astrid.
Recommended Events
Underwriting in Motion: Telematics, AI, and the Future Unveiled in Austin | Reuters Events Insurance | Aug 19, 2025
Auto insurers are moving from underwriting based on static snapshots to decisions informed by a continuous flow of driving data. The core insight is simple but consequential: telematics is not about connecting vehicles for its own sake, it is about using the data to run the insurance business better, from selection and pricing to claims and customer engagement.
This topic will be tackled at Reuters Events: Connected Underwriting USA 2025, taking place September 29–30 in Austin, TX. As the inaugural edition of this high-impact event, it brings together 200 senior leaders to explore how underwriting is strategically evolving in the age of AI, IoT, and predictive analytics. The strategic rationale runs wider than price adequacy. Used well, IoT-enabled insurance improves customer experience, strengthens core processes like underwriting and claims, opens new knowledge-based business opportunities, and advances social goals such as road safety and affordability.
Even regulations are starting to support this evolution. Effective 1 Jan '26, a just-approved law mandates insurance discounts for commercial vehicles with dashcams and telematics systems in Louisiana. Each insurer will have to communicate to the commissioner the "discount in an amount actuarially justified based on loss experience, claims data, or other relevant factors".
The carriers able to operationalize the usage of the camera-based paradigm will be able to underwrite more business and to manage it in a profitable way. The rest will be left repricing yesterday’s risk with yesterday’s tools, and perpetrating the unsustainable technical results seen on commercial auto liability over the past decade.
This “connected” paradigm recasts the entire insurance value chain, offering a competitive advantage to the carriers able to adopt it in their processes adequately. Sensors capture real-life events; platforms transform raw signals into calculated variables; business applications and user experiences put those insights to work. Value appears only when data is actually used—an important discipline for carriers tempted by a spry-ad-pray approach.
Learn more about the event: Connected Underwriting USA 2025
Matteo Carbone, IoT Observatory, Co-Founder, Board member, Insurtech Thought Leader, Keynote speaker and writer on insurance innovation
ITC Vegas 2025 | October 14-16 | A Wonderland of Possibilities
Insurance innovation for our changing world
ITC Vegas (InsureTech Connect)uniquely combines unbeatable networking with what’s new and next, ensuring your time will be spent meeting more people, discovering new solutions, generating deal flow, and creating valuable partnerships. It’s a conference experience for the entire insurance ecosystem and unlike anything you’ve attended before! Join the transformative insurance event that doesn’t just bring the industry together – it moves the entire industry forward.
'Connected’ Newsletter & Podcast and InsurTech Consulting are proud partners of ITC Vegas 2025 again this year
Use this promo code 200ITC826 to receive $200 off the registration fee. Discount valid for new registrations only
2025 MSO Symposium Offers Insights to Set Up Collision Repairers for Success
The 2025 MSO Symposium will return to Las Vegas on Nov. 3rd for its 14th annual conference. The Automotive Service Association looks forward to hosting the collision repair industry and kicking off the week of the SEMA/AAPEX show, the largest automotive industry convention of the year.
This highly anticipated single-day event brings many of the most experienced, high-growth executives of leading MSOs in the collision repair industry together for peer-to-peer networking, information on growth strategies, and discussion of industry-centered data.
“The MSO Symposium brings together the most forward-thinking minds in collision repair,” said Gary Bunce, senior vice president of sales for Gerber Collision & Glass and a recent advisory board member addition. “For me and my team, it's a must-attend event — a place to stay ahead of industry shifts, engage with peers, and gain insights that directly influence our strategy.”
"Attending the MSO Symposium gives collision repair owners a front-row seat to the latest trends shaping our industry — whether it’s technology, insurance dynamics or consolidation strategies,” David Roberts, founder and managing partner of Focus Advisors and an MSO Symposium advisory board member, told Autobody News.
“It’s a rare chance to hear directly from the leaders driving change, connect with potential partners, and gain insights that can position their businesses for long-term success," Roberts added. "In a market evolving as quickly as ours, those who show up to events like this are the ones best prepared to grow and compete."
For more information, visit the website or contact MSO Symposium organizers.