Driving the Cost Of Auto Injury Insurance: Economic Losses, Attorney Involvement

A new study from the Insurance Research Council (IRC) shows that claimed economic losses for bodily injury liability (BI) insurance claims increased 10 percent annualized from 2012 to 2017, substantially above the medical inflation rate of 3 percent over the same period. Claimed economic losses include reported expenses for medical care, lost wages and other out-of-pocket expenditures. In 2017, medical expenses accounted for 79 percent of all claimed economic losses. Meanwhile, insurer payments for BI claims grew 6 percent annualized, somewhat slower than the growth in claimed losses but still double the rate of medical inflation.