5 Factors That are Affecting the Insurance Industry in 2015

Like all industries, the insurance industry is shaped by a variety of factors from the lifestyle habits of different age groups, to changes in natural resource prices. Here are five factors expected to affect the insurance industry in 2015.

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1. The Price of Gas

When gas prices are low or predicted to drop, the per gallon price at the pump affects drivers considerably. As the economy strengthens, and gas prices fall, Americans drive more and use public transportation less, which means more cars on America’s roadways.

2. Auto Accident Claims

The stronger economy, increase in car sales and cheaper gas, when added to last winter’s adverse weather conditions and more fender benders and pile ups, resulted in a substantial increase in claims. More new cars on the road usually means more claims.

3. Auto Technology

Technological advances are reflected in new car features that keep drivers in sync with digital hotspots, better navigation, communication between vehicles, and safety through improved crash avoidance and in-car diagnostic services. Consumers expect the latest technology systems including a connected vehicle and a safe one.

4. Auto Repairs

With changes to vehicle safety and technology, repairs are now far more complex than at any other time. Repair costs have increased because the cost and number of parts required for each repair have increased, as has the price the labor.

5. Millennials

Today, young adults are leaving college with more debt and more likely to move back home while looking for a job. They value owning a car, but are more likely to take public transport and put off buying one because of he price and maintenance costs. As young adults find more job prospects, however, they are expected to purchase more insurance for their home, rental and auto.

Contact us to discuss your insurance needs.

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About Schumacher Insurance Agency

Why trust us? What do we do different than every other insurance agency? Consider this an invitation to get to know us. We believe we are an exceptional team of protection specialists that work hard to do things the right way, to educate our clients on insurance, and make the experience effortless. We are excited to introduce a new insurance experience for our customers. We encourage you to speak with our team who can show you how different we are… from text messaging services for late payments to educational insurance concepts on Facebook. We will prove our innovative approaches to obtain the proper coverage’s for you, your family, your business. Insurance is likely not the most interesting affair for everyone, but it is most certainly ours! Yes, we are insurance geeks!

Posted on August 20, 2015, in Agency, Uncategorized. Bookmark the permalink. Leave a comment.

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