Eversheds Sutherland Up to Speed Blog
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Concerns About Losses in the Auto Insurance Market

According to a recent Fitch Ratings report, the auto insurance industry experienced significant losses last year that outpaced premium increases. Although some carriers were able to make a profit in the personal auto segment, an increase in insurers’ average combined ratios indicate that the overall market is weakening. Losses may be increasing due to an increase in miles driven, the...

Pricing Car Insurance Based on Occupations

The New York Department of Financial Services (DFS) has recently requested information from some insurers about how they relate a customer’s education and occupation to driving, risk, and auto insurance pricing. Actuaries may use information about occupations to price data, and people with jobs that are associated with higher risk may pay more for their insurance. The DFS is...

Facebook and Car Insurance

A car insurer that planned to use Facebook data to set car insurance premiums has had to change its plans after Facebook clarified that such use would violate its privacy guidelines. Admiral Insurance had planned to offer a “first car quote” app to young motorists in the UK. It would analyze Facebook “likes” and posts to determine the driver’s level of risk. The insurer could then...

The Future of Tracking Devices and Usage-Based Insurance

According to the Wall Street Journal, some consumers have said they are wary of using tracking devices offered by insurers to assess their driving and potential for discounts for good driving. Insurance companies are increasingly using personal data to assess risk and fine-tune their pricing of policies—or at least to provide discounts. As insurers have tested tracking devices, they...

Auto Loans At All Time High

The amount borrowed by Americans to pay for vehicle purchases climbed to a record high of $968 billion in the third quarter.  Higher vehicle prices and an increase in auto sales, up 5.8 percent from a year ago, have driven increased borrowing. The majority of money borrowed, 61.3 percent, is by drivers with prime or super prime credit ratings. Borrowing by drivers with shaky credit,...