On a recent edition of AAIS Pulse, Crawford & Company CEO Rohit Verma and AAIS VP of Products John Kadous sat down to discuss the state of the insurance market, including topics such as the economy and supply chain, auto risks, climate change and natural catastrophes, data, and technology, and much more.
Mr. Verma addressed major trends affecting insured losses in the U.S. insurance market pre-pandemic, including an increase in the frequency of and severity of physical damage in the auto insurance sector, unmodeled CAT losses such as tornadoes, forest fires, and hailstorms, as well as changes within the cyber insurance sector.
The pandemic had a “profound” effect on the insurance industry, particularly, sectors related to supply chain and auto insurance. Mr. Verma believes that we will continue to see auto claims evolve. Two years ago, cars on the road were an average of 11-years-old. However, due to a shortage of parts, it’s increasingly difficult to find used and new cars today. He sees the average car age increasing, placing more pressure on auto shops and the auto supply chain. While the construction sector is also struggling with labor and supply shortages, it still has room to grow, while the auto sector will continue to pose a challenge for the next few years.
AAIS and Crawford are both significantly vested in the auto insurance sector, with AAIS expanding its Personal and Commercial Auto programs and Crawford’s acquiring WeGoLook, which has streamlined the claims and appraisal process through allowing professionals to “get their eyes” on vehicles and their damage as quickly as possible.
Mr. Verma and Mr. Kadous went on to discuss a wide range of topics, from the economy and supply chain issues, to climate change and catastrophe losses, as well as trends in customer service and Crawford’s vision for the future.