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.
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.
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.
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