How PBM Pharmacy Cost Savings Programs Can Help Auto Insurers Attract Policyholders
For years, auto insurance companies have struggled to manage increasingly frequent and severe claims, causing yearly premium increases to become the norm.
Multiple factors have led the cost of an individual loss to rise in recent years, putting strain on auto lines. Accident frequency and severity are on the rise and the cost of repairs is increasing due to supply chain issues and the fact that vehicles are becoming more technologically sophisticated, per a report from the Insurance Information Institute. As loss ratios grow, carriers are increasing premiums.
Yet some still see a glimmer of hope — and a major business opportunity. Despite the challenges of claims frequency and severity, there are still a high number of carriers with profitable auto books.
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