Investor Presentaiton
BODILY INJURY CLAIM SEVERITY AND FREQUENCY
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
.58
2008 2009 2010 2011
Average Payment Per Claim
2012
2013 2014 2015 2016 2017
Number of Claims Paid Per 100 Vehicles
COLLISION CLAIM SEVERITY AND FREQUENCY
Claim Cost Increases Continued
.64 Data from the 2018 AIRB Report, shown in the
.63 graphs to the left, demonstrates the following:
.62
.61
.60
.59
5.2
4.8
4.4
4.0
➤ Aside from a brief spike in claims between 2013
and 2015, the current number of bodily injury
claims have dropped since 2015 and are on par
with pre-2013 rates (top graph).
➤ The average payment per claim has only risen
slightly from 2015 to 2017, and has actually
dropped from 2016 to 2017 (top graph).
Between the reduced number of claims and
payouts, insurance companies appear to be paying
out less for bodily injury claims today than in
2015 and certainly less than in 2016.
➤ There is no mention of inflationary increases in
any of the statistics employed in the AIRB or
Wyman reports despite the increase in the Cap
amount and inflationary increases with respect to
legal, adjuster, expert and other insurance costs. 37
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
3.6
2008 2009
2010 2011
Average Payment Per Claim
2012
2013 2014 2015 2016 2017
Number of Claims Paid Per 100 Vehicles
Source: 2018 AIRB ReportView entire presentation