When faced with changing dynamics or imminent disruption, business executives tend to respond in one of three ways:
- Many will simply do more of what they've always done, putting their tried-and-true “success formulas” into hyper-drive.
- Others will wait for the “dust to settle” before taking action.
- A few bold explorers will seek out innovative new solutions.
“Quick fixes”
Faced with falling profits caused by rising collision repair costs, claims counts and accident severity, many auto insurers are tempted to choose Response #1. Despite the availability of modern technology platforms that can dramatically lower costs and improve adjuster efficiency, claims managers may be tempted to rely on the “usual suspects” — quick cost-cutting fixes that have worked in the past. But this time around, these quick fixes may cost auto insurers more money than they save. Worse: they may also damage customer service and retention efforts.
From 2008 to 2014, auto claims managers were accustomed to relative consistency in loss payouts. Auto insurers enjoyed relatively flat accident and severity rates, as well as decreasing loss frequency, thanks in part to high gasoline prices.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
