Auto insurers are in the middle of a perfect storm. Performance is suffering as more sophisticated vehicles are proving costlier to repair. Rate increases, designed to help fund innovation and bring combined ratios closer to 100, will be tough for consumers to absorb when we consider inflation-adjusted wage growth has barely hit double digits in the last 40 years. Another external pressure for insurers is the changing consumer mindset. Consumers are now accustomed to driving experiences themselves, directing all their interactions through their phone. This means every company must meet their demands for service delivery, which generally means self-service, until it doesnt.
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