Share on Facebook Share on Twitter Share on Google+ Share on Linkedin In a recent edition of A.M. Best’s First Monday series, Vice President Rich Attanasio discusses how usage-based data and advances in automobile technologies are driving changes in the U.S. personal automobile sector. The advancement of safety features in vehicles is having a positive impact in regards to frequency trends in the personal automobile sector said Mr. Attanasio. New technologies including crash avoidance systems and better safety enforcement “has had a pretty material impact and really benefitted performance in the automobile line.” These results, Mr. Attanasio went on to say are only slightly offset by medical inflation increased costs to repair the new vehicles and distracted driving. There is also the potential that the aging U.S. population, over the long term, could cause the U.S. personal automobile line could shrink. Another factor that could cause the line to shrink are new technologies under development including self-driving cars and crash avoidance systems said Mr. Attanasio. “As the frequency comes down its conceivable that the market need for insurance comes down as well.” Carriers are making efforts to improve their pricing segmentation through usage based insurance. While there are issues surrounding the roll out of usage-based insurance, it is expected, in the future, to have an impact on how policies are priced. According to Mr. Attanasio “Companies that are well prepared for that, they are thinking with a long term view, adapting with a long term view in terms of bundling of products…those are companies that are well positioned going forward.” We’d like to thank A.M. Best for their contribution to our program. If you’d like to see more of the First Monday Series, visit the A.M. Best website.