Private passenger automobile insurance rates may increase this year as insurers seek to keep up with worsening loss cost trends, an investment analyst said.
In an analyst's note, Meyer Shields, with the investment firm Stifel Nicolaus, said auto insurers can now justify their requests for rate changes because they “can now make a legitimate actuarial case for rate increases, despite their recent profitability.”
He said most insurers include adjusted state-specific premium and loss data to back up their calculations, not companywide historical results.
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