2022 Annual Review & Inflation Shock Impact

Shock Impact - Collision Data prior to 2022 is insufficient to accurately predict the future loss trend. Inflation Shock must be added to the regular loss trend in order to capture the emerging trends in claims. Relative Cost 1.15 1.1 1.05 0.95 1 Collision 0.9 2021Q4 2022Q1 2022Q2 2022Q3 2022Q4 2023Q1 2023Q2 2023Q3 2023Q4 Assumptions as of May 30, 2022 -Trend 2.5% Trend + Inflation Shock 6.4% Loss Cost 7.7% higher with Inflation Shock AVIVA 8 DO

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