A microchip shortage. Logistics industry backlogs. Supply and labor challenges. Worsening driver behavior. Social inflation.
These are just a few challenges the auto industry is currently grappling with, meaning claims will likely continue to be impacted and rates will continue to rise as auto insurers confront a hardening market, experts say.Executive SummaryAs the auto industry continues to grapple with many challenges such as supply and labor shortages, worsening driver behavior and social inflation, among others, experts say claims will likely continue to be impacted and rates will continue to rise as the market hardens. Experts in this article unpack the trends that are contributing to worsening claims severity and frequency, as well as what to expect in the auto insurance industry over the next few years.