Trend: Reduction in Auto Claims Follows Coronavirus Surges
Where there is an increase in Coronavirus cases, there is a decrease in auto claims. According to an article on Claims Journal and Andy Cohen, the COO of Snapsheet, “claims frequency dropped by 40 to 50 percent after closure orders took hold, but auto claims ticked back up to a level about 20 to 25 percent below normal levels between Memorial Day and the July Fourth weekend.”
And what are we seeing now? Another decrease in claims as cases surge in states such as California, Texas, Arizona, and Florida after July 4th.
Take a look at the infographic below as posted by CCC, a photo-estimate software provider, highlighting a monthly Auto Claims Snapshot for June 2020:
Every state with the exception of South Dakota saw a decrease in claims (severe hailstorms caused a 73% increase in SD). Bethany Suckrow of CCC stated, “As of early July, with the number of daily confirmed COVID-19 cases per 100K residents surging in states such Arizona, Florida, California and more, certain states are starting to see overall non-comprehensive appraisal counts trend down again. How far they fall will likely depend on how extensive efforts to contain the virus become.” Here is something additional to consider; the upcoming school year and schedules. Andy Cohen stated, “As school systems move to virtual, partial and flex scheduling, parents are less likely to be commuting to an office at rush hour which may keep claim frequency suppressed for the rest of the year.” We will be keeping our eyes on the trends.