Personal Insurers Need to Avoid a Price War

Auto and home insurers have seen fewer incidents. But policy rates may keep adjusting lower to reflect that.

Personal insurers have been benefiting from fewer claims, but nothing lasts forever.

Auto property-damage and injury frequency, as insurers put it, dropped by a quarter or more from a year earlier in the first half of 2020 at Allstate, Berkshire Hathaway’s Geico and Progressive, according to company filings. Not only were people driving fewer miles and thus having fewer car accidents, but staying at home also led to a reduction of frequency in homeowner claims such as break-ins, Allstate recently told analysts.

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