Category Archives: Auto Insurance

Auto Insurance, Risk-Based Pricing

Gender Identity
and Auto Insurance

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By Jeff Dunsavage, Head of Research Publications and Insights, Triple-I

Gender is one of many factors insurers consider when looking at a driver’s risk profile, as permitted or prohibited by state laws and regulations, using the gender indicated on drivers’ licenses.  Twenty-two states currently provide – in addition to “male” and “female” designations – non-binary gender identity options or do not require gender to be listed at all. 

What are the insurance implications, if any and where permissible by state law, of a non-binary gender marker or the absence of any gender marker on a driver’s license? The short answer is that state-by-state differences in the relevant data limit the impact.

State use of gender markers

As of June 2026, 22 states allow an “X” gender marker on state IDs and driver’s licenses, representing 44 percent of the country. Interpreted in some states as a “not specified” gender, the X marker is widely regarded as a gender-neutral option for those who are not exclusively male (“M”) or female (“F”), which may include trans, nonbinary, and/or intersex individuals. Oregon became the first state to authorize the designation in 2017, following in the footsteps of similar laws in several other countries. 

Within states that offer X markers, residents may update their gender marker to F, M, or X with varying degrees of ease, depending on state process requirements. Residents outside these states are limited to F or M designations, with gender marker corrections on state IDs and driver’s licenses altogether prohibited in at least eight states. 

By population, 51 percent of trans adults live in states that allow these F, M, or X marker updates. Twenty-two percent live in states that bar these changes, according to estimates from the Movement Advancement Project. This figure could grow as legislation restricting the legal recognition and rights of trans people ramps up across the country, with nearly 800 such bills under consideration so far this year, 60 of which have passed. More than one thousand were considered in 2025, marking the sixth consecutive record-breaking year for such proposals. 

Risk-based pricing

“Risk-based pricing” is a basic insurance concept that might seem intuitively obvious when described – yet misunderstandings about it frequently sow confusion. Simply put, it means offering different prices for the same level of coverage, based on risk factors specific to the insured person or property. If policies were not priced this way – if, for example, insurers had to come up with a one-size-fits-all price for auto coverage that didn’t consider vehicle type and use, where and how much the car will be driven, and so forth – lower-risk drivers would subsidize riskier ones. 

Little uniform data currently exists, however, on accident trends among trans and nonbinary drivers. As a result, it’s unclear whether or how rates might be affected for those with an X gender marker or for those without an updated gender marker of any kind. 

Telematics can help

A 2021 article from the National Association of Insurance Commissioners’ (NAIC) Journal of Insurance Regulation, as well as a 2024 Casualty Actuarial Society (CAS) study, point to the promise offered by telematics and usage-based technologies. The NAIC Journal article recommends abandoning gender as a rating factor, arguing that “technology has advanced the opportunity to more directly measure actual driving behavior and exposure through other predictors.”  The CAS study suggests telematics can “significantly reduce the need to include age, sex, and marital status in the claims frequency and severity models.” 

While acknowledging “not all of the sensitive variables we tested could be eliminated from the model,” the CAS study went on to say, “The analysis shows there is still value in insurers testing the addition of telematics to their models to potentially reduce reliance on sensitive information that could result in actual or perceived bias.”

Commitment to fairness

Fair, accurate pricing and underwriting are at the heart of the risk-based approach, and property/casualty insurance industry is committed to ensuring fairness and promoting trust across all the communities it serves. Insurers and the actuaries and data scientists that support them are well positioned to continue helping policymakers and decisionmakers understand the complex science of risk and play a constructive role in the policy discussion.

Learn More: 

LGBTQIA+ Homeownership Gap May Be Fueling Insurance Protection Gap 

Diversity and Inclusion in the Insurance Industry 

Clarifying Drivers of Rising Auto Premiums 

Allstate, Aspen Initiative Seeks to Ease Trust Gap 

Human Needs Drive Insurance and Should Drive Tech Solutions 

 Triple-I Issues Brief: Risk-Based Pricing of Insurance (Members only content)

Auto Insurance, Industry Financials, Market Conditions

Personal Auto Insurance Rebounds After Years
of Pandemic Volatility

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By William Nibbelin, Head of Industry Data and Actuarial Research, Triple-I

The U.S. personal auto insurance market achieved its strongest underwriting performance of the post-pandemic era in 2025, recording a net combined ratio of 91.8. According to Triple-I’s latest Issues Brief, this marked a significant improvement from the line’s 95.3 ratio in 2024, signaling a welcome return to profitability for a sector that commands more than a third of the entire domestic property and casualty insurance industry.

Combined ratio is the most common measure of insurer underwriting profitability. It is calculated by dividing the sum of the claim-related losses and expenses by premium. A ratio over 100 indicates the industry is paying out more than it is taking in.

Premium growth stabilizes

The road to this recovery required substantial rate adjustments. Following the pandemic, the auto insurance market experienced two back-to-back years of double-digit premium growth, climbing by 14.4 percent in 2023 and 12.8 percent in 2024. These hikes allowed insurers to keep pace with skyrocketing inflation and supply-chain disruptions.

In 2025, however, net premium growth cooled to a manageable 4.0 percent, landing just below the broader industry average. This deceleration indicates rates are finally settling as the macroeconomic forces that previously drove up costs begin to ease, particularly vehicle replacement and repair costs.

For the first time since 2019, key economic indicators—such as the Consumer Price Index for used cars, new vehicles, and automotive parts—recorded notable decreases over the 2023 to2024 period. Because insurer rate adjustments historically mirror vehicle pricing trends with a slight time lag, the drop in costs has helped pave the way for a calmer pricing environment.

Auto liability severity gap expands

While overall loss ratios have improved from their late-2022 peak, recovery has not been uniform across all types of auto coverage. The industry has experienced a widening gap between physical damage claims (covering vehicle repairs) and liability claims (covering injuries and legal costs).

Repairing physical damage has become significantly more efficient as supply chains normalized, causing loss ratios in that segment to drop sharply. In fact, by 2025, the cost index for physical damage dipped below its 2022 level, aided by a steady drop in overall claim frequency.

Auto liability has proven far more stubborn. Though accident frequency remains below pre-pandemic baselines, the average financial severity of liability claims has surged. Between 2019 and 2025, the average cost per liability claim jumped by 67.5 points. As a result, the financial gap between resolving a physical damage claim versus a liability claim reached a ten-year high by the end of 2025.

Market options

Market competition determines how many choices consumers have when shopping for a policy. On a nationwide scale, the personal auto market sits in a moderately concentrated zone, though it has become noticeably tighter since 2022 as larger carriers expanded their footprint.

On a state level, drivers in Rhode Island, Louisiana, Arkansas, and the District of Columbia face the most consolidated markets, where a handful of dominant carriers handle the bulk of the business. Conversely, Connecticut, Massachusetts, and California boast the least concentration and the most choices among carriers.

Legal system abuse remains a roadblock

While vehicle prices have leveled off, legal system abuse continues to be a major cost driver, especially for auto liability. This trend includes a rise in aggressive litigation, attorney involvement, and exceptionally large jury payouts generated by third-party litigation funding networks.

A study by Triple-I and the Casualty Actuarial Society revealed that these legal tactics inflated auto liability losses and defense costs by an estimated $91.6 billion to $102.3 billion over a ten-year period ending in 2024. This form of inflation is detached from the tangible economy, representing a systemic cost that ultimately impacts consumer premiums.

Fortunately, states like Florida, Georgia, and Louisiana have recently enacted meaningful legislative reforms designed to curb legal system abuse, which have already begun yielding positive results. While the specific policy levers may differ, their efforts demonstrate the kinds of targeted statutory changes that can effectively lower legal overhead and bring pricing relief back to policyholders nationwide.

Learn More:

Clarifying Drivers of Rising Auto Premiums

U.S. P/C Market Records Hard-Earned Decade-Low Combined Ratio

Florida Reforms Drive Benefits for Consumers

States Take the Lead on Third-Party Litigation Funding Reform

Oil Prices Might Reduce Accidents, But Severity Would Offset Impact

Legal System Abuse Awareness Campaign Spreads Across U.S.

Affordability, Auto Insurance, Highway Safety, Insurers and the Economy, Legal Environment, Technology

Clarifying Drivers of Rising Auto Premiums

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By Lewis Nibbelin, Research Writer, Triple-I

Personal auto insurance premiums represent multiple aspects of the affordability crisis U.S. consumers face today, and a panel discussion at the Brookings Center on Regulation and Markets this week helped define and clarify them.

Panel moderator Aaron Klein, Miriam K. Carliner Chair and senior fellow in Economic Studies at the Brookings Institution, began the discussion by acknowledging “the rising rates of car insurance are part of the broader set of topics that have been given the term ‘affordability.’”

Representing insurers, regulators, and consumers, the panelists included Sean Kevelighan, CEO of Triple-I; Justin Zimmerman, a former commissioner in New Jersey’s Department of Banking and Insurance; and Chuck Bell, programs director for advocacy at Consumer Reports.

All agreed that much of the blame for rising rates can be attributed to external factors such as the costs associated with safer, more technologically sophisticated vehicles, thereby raising the costs to repair and replace them. Inflation has exacerbated these impacts, with auto replacement costs up 28 percent from 2021 to 2025. Over the past 12 months, inflation increased 4.2 percent, thanks in large part to geopolitical risks, supply-chain disruptions, and rising oil prices.

Disagreement surfaced, however, around the degree of insurance-industry responsibility for insurance costs. Consumer Reports’ Chuck Bell suggested the $14 billion insurers issued in rebates to consumers during the COVID-19 pandemic was insufficient, prompting Kevelighan to point out that, “of all the refunds being given, you saw the most coming out of the insurance business and community.” Zimmerman noted that many states also froze insurers’ ability to raise rates during the pandemic, leading to some post-pandemic “rate catch-up.”

Rampant legal system abuse helps fuel the strain. While derided as a concept by some, Kevelighan cited analysis from Triple-I and the Casualty Actuarial Society that indicates excessive litigation added up to $281.2 billion in increased liability insurance losses from 2015 to 2024 – a finding that economic inflation alone cannot explain. A separate Triple-I report on civil case filings indicated roughly one-third of increasing inflation in auto liability losses stemmed from these legal trends.

Kevelighan also highlighted the $380 million spent by third-party litigation funders (TPLF) on online advertising last year, according to a study from the National Insurance Crime Bureau and 4WARN. Now “a global multi-billion-dollar asset class,” TPLF has become a target for reform in a growing number of states, notably New York.

New York affordability struggles

Wiping out billions of dollars in U.S. economic activity annually, legal system abuse costs New York residents 427,794 jobs and $7,027 per household per year, contributing to the fourth-highest auto insurance expenditures in the nation, Triple-I estimates. Moreover, the state’s average personal auto injury claim is $46,726, at more than twice the national average.

Building on legislation to tackle TPLF, New York lawmakers recently passed a package of auto insurance reform bills to disincentivize legal system abuse and fraud, one of which will introduce a $100,000 cap on noneconomic damages for drivers who were at fault, uninsured, or impaired at the time of an accident. Comparative negligence rules were also updated to ensure costs cannot be shifted away from the motorists responsible for an accident.

Kaitlin Asrow, New York State’s acting superintendent for the Department of Financial Services, told Klein in an interview before the panel, “Over the last five years, suspicious fraud reports for just no-fault auto increased 80 percent.” She added that “staged accidents were up 34 percent” in New York City alone during the same period.

While further reforms are needed to address the Empire State’s high insurance costs, Kevelighan pointed out that similar efforts in Florida have begun to drive substantial premium reductions and renewed private market competition.

Modifying behavior for risk reduction

Though many influences on insurance costs are structural, Kevelighan emphasized “a lot of this comes down to our behaviors and how we’re driving and living.” As such, insurance must shift from “a once or twice a year type of transaction” to “an open and ongoing conversation” between insurers and their customers.

Part of that conversation revolves around distracted driving, which jumped significantly after the onset of the COVID-19 pandemic and remains at elevated levels. As measured by a recent Nationwide survey, seven in ten commercial drivers have reported experiencing increased distraction as well as reckless driving from other drivers, at a 10-point increase from 2025.

Nationwide also found that commercial auto loss ratios drop by at least 30 percent when policyholders use telematics, a technology that monitors mileage, braking and acceleration, and other driving patterns to provide real-time feedback that can adjust unsafe behavior. In addition, built-in accident-avoidance systems are reducing rear-end collisions by 40 to 50 percent.

Noting telematics research is still in its early stages, Kevelighan said the “interaction and exchange” of risk information between insurers and policyholders “is where the industry is going to start shifting from just detecting and repairing after a catastrophe to predicting and preventing.”

“We’ve got to make sure we’re balancing out what it is that we’re doing to reduce our risk, because that’s the real driver,” Kevelighan explained. “When we reduce the risk, we can reduce the cost.”

Learn More:

N.Y. Natural Catastrophe Exposure Highlights Risk-Based Pricing Benefit

States Take the Lead on Third-Party Litigation Funding Reform

Oil Prices Might Reduce Accidents, But Severity Would Offset Impact

Florida Premiums Drop Amid Post-Reform Stability

New York Among Least Affordable States for Auto Insurance

Triple-I Testifies on New York Insurance Affordability

Revealing Hidden Cost to Consumers of Auto Litigation Inflation

Auto Insurance, Business Insurance, General Liability, Homeowners Insurance, Insurers and the Economy, Market Conditions, Workers Compensation

U.S. P/C Market Records Hard-Earned Decade-Low Combined Ratio

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By William Nibbelin, Head of Industry Data and Actuarial Science, Triple-I 

After years of significant financial strain, the U.S. property/casualty (P/C) insurance industry is showing strong signs of recovery and stabilization. According to the latest Insurance Economics and Underwriting Projections: A Forward View report from Triple-I and Milliman, the industry’s net combined ratio (NCR) reached its lowest level in more than a decade in 2025, reflecting improved underwriting conditions as the sector navigates the tail-end of post-pandemic economic volatility and hyperinflation.

Economic Outlook

While the industry maintains demonstrated resilience, the economic environment signals greater uncertainty. Real GDP growth slowed to 2.0 percent in the first quarter of 2026, while inflation remained above the Federal Reserve’s target at 3.3 percent in March. Triple-I Chief Economist and Data Scientist Michel Léonard, Ph.D., CBE, emphasized the cost drivers behind these results, explaining they “should be viewed in the context of the significant financial strain insurers have faced in recent years.”

“Although conditions have stabilized somewhat, insurers continue to operate in an environment marked by elevated catastrophe risk, higher claims severity, and ongoing economic uncertainty,” Léonard said. “Insurance employment declined 1.8 percent year over year in March, underperforming the broader labor market and reflecting continued weakness in sector employment conditions. Meanwhile, higher energy prices and persistent inflationary pressures continue to strain household and business finances.”

A critical factor for future growth is monetary policy. Forecasts for 2027 and 2028 hinge on the Federal Reserve’s interest rate decisions, with a holding pattern currently in place as the market monitors unemployment rates as a barometer for potential rate cuts.

Personal Lines Underwriting Results

The 2025 recovery was most visible in personal lines, which achieved a dramatic turnaround from supply chain-driven losses following the pandemic.

  • Personal Auto: This segment reported a 2025 NCR of 91.8, a 3.5-point improvement from 2024. Net written premium growth slowed to 4.0 percent, its lowest level since 2021.
  • Homeowners: Despite an active catastrophe year, including the Los Angeles wildfires in the first quarter, underwriting performance improved significantly. The 2025 NCR of 88.1 was the lowest in over a decade, aided by easing replacement cost pressures and prior pricing discipline.

Commercial Lines Underwriting Results

While property lines flourished, certain commercial lines face ongoing challenges:

  • Commercial Auto and General Liability: These are the only major lines with an NCR above 100 in 2025. Jason B. Kurtz, FCAS, MAAA, principal and consulting actuary at Milliman, explained that “litigation pressures and claims severity trends continue to result in elevated loss costs, constraining improvement in these segments despite broader industry strength.”
  • Workers’ Compensation: This line remains a pillar of stability, with projected combined ratios in the low 90s through 2028. For 2025, the preliminary combined ratio is 91, at  “an increase of about 5 points from the prior year,” said Donna Glenn, chief actuary at the National Council on Compensation Insurance (NCCI). Glenn added this change “is primarily due to an increase in the loss and underwriting expense ratios.”

Forward View

Underlying P/C growth for the first half of 2026 is forecast at -3.7 percent, a significant dip from the 1.6 percent growth in 2025. A recovery is anticipated beginning in 2027.

Replacement costs are a primary area of concern for long-term pricing. Triple-I Chief Insurance Officer Patrick Schmid, Ph.D., noted, “replacement costs moderated significantly from their 2022 peak, but our forecasts show them re-accelerating through 2028 and eventually outpacing overall U.S. inflation.”

While property lines have strengthened, Schmid cautioned that “the industry faces a challenging road ahead with elevated catastrophe exposure, economic uncertainty, and persistent claims-cost pressures.”

New Deep-Dive Resource

To provide members with more granular insights, Triple-I has launched State of the Line Issues Briefs, a monthly series focusing on the nuances of individual segments. These deep dives are designed to help members navigate specific strategic planning challenges beyond high-level quarterly forecasts. In an addendum to the briefing, Triple-I shared key findings from these reports.

For the farmowners’ line, analysis revealed the producer price index for commercial machinery repair acts as a high-correlation leading indicator for premium changes. Additionally, a major structural shift was identified in fire and allied lines, where the standard market share dropped from 66.7 percent in 2016 to just 52.7 percent in 2024, as premiums migrated toward the excess and surplus and residual markets.

Affordability, Auto Insurance, Catastrophes, Homeowners Insurance, Legal Environment

Florida Reforms Drive Benefits for Consumers

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By Lewis Nibbelin, Research Writer, Triple-I

Legal system reforms targeting fraud and excess litigation in Florida are helping drive renewed underwriting business and lower premium rates for consumers throughout the state, signaling ongoing improvements in the Sunshine State’s insurance market health, according to an S&P Global Market Intelligence analysis.

Post-reform, nearly 20 new property insurers have entered the Sunshine State and existing carriers have expanded their market share, fueling double-digit growth in direct written premiums for many of the state’s largest insurers in 2025. As policyholders shifted to the private market, policies in force for Citizens Property Insurance Corp. – the state-run insurer of last resort and previously the state’s largest residential insurance writer – dropped by 57.8 percent from 2024.

Premiums for Citizens policyholders fell 43.7 percent, alongside extensive premium reductions for thousands of Florida homeowners and drivers across the property/casualty insurance market. Florida’s top five auto insurance groups, for instance, averaged a more than 6 percent rate reduction through mid-year, accounting for 78 percent of the state’s auto market. These reductions have increased to an average of 8 percent based, on the most recent 2026 regulatory filings.

Claims-related litigation has also plummeted, slashing the market’s defense and cost containment expense ratio to 1.9 percent, S&P reported – a major decline from 8.4 percent in 2022, before the 2022 and 2023 reforms were fully implemented. In dollar terms, 2025 saw $537 million in direct incurred legal defense expenses, down from roughly $792 million the prior year and from $1.6 billion in 2022.

Amid decreasing litigation costs, Florida’s residential property insurers recorded over $2 billion in underwriting gains in 2025, with the state’s homeowners’ market posting its highest net income in more than a decade.

Favorable 2025 results are good news, but it’s important for policyholders and policymakers to remember the sustained, industry-wide reform efforts that underpin Florida’s current stability. Despite their measurable benefits to consumers, the reforms have faced repeated legislative attacks, threatening to undo much of this progress.

Florida’s strong market performance also reflects relatively mild catastrophe activity in 2025, including the absence of any U.S. hurricane landfalls. Though the 2026 Atlantic hurricane season is forecast to be “somewhat below normal,” ongoing caution is essential, as just one significant landfall could threaten recent market growth and leave lasting damage.

Compounding these challenges is Florida’s most severe drought in over 25 years, which has produced nearly 2,000 wildfires in 2026 year-to-date and impacted many areas traditionally considered low risk. With wildfire risks still looming, the shift underscores the dynamic headwinds that imperil the state, necessitating continued legislative support of reforms to keep coverage affordable and available in one of the most complex states to insure.

Learn More:

Legal System Abuse Awareness Campaign Spreads Across U.S.

Lessons for Texas in Florida Legal Reforms

Florida Premiums Drop Amid Post-Reform Stability

Litigation Reform Works: Florida Auto Insurance Premium Rates Declining

New Consumer Guide Highlights Economic Impact of Legal System Abuse and the Need for Reform

Florida Senate Rejects Legal-Reform Challenge

Affordability, Auto Insurance, Homeowners Insurance, Insurers and the Economy, Legal Environment

Illinois Bill Would Hurt Insurers and Customers

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By Jeff Dunsavage, Head of Research Publications and Insights

Senate Bill 1486 – currently moving through the Illinois General Assembly – would unnecessarily burden insurers and hurt the customers it is intended to protect.

“The measure would add new regulatory layers that could impede the accurate pricing of risk while doing nothing to address the underlying causes of rising premiums,” Triple-I said in a recently published Policy Brief. “Premiums are increasing at different rates across the country, reflecting a mix of factors that include climate events, shifting populations, rising costs to repair and replace property, and legal system abuse.”

All these factors drive up the number and the cost of claims and, if not properly addressed, could erode the policyholder surplus insurers are required to keep on hand to pay claims. If surplus declines below levels mandated by regulators, insurers must raise rates or rethink their appetite for writing coverage in riskier states.

Neither option is good for consumers.

If affordability is the goal, the most effective path is cost reduction. Illinois leaders should model the behavior of states that are addressing the root causes of rising insurance premiums – not just treating the symptoms.

The brief also points out that both homeowners’ and personal auto insurance in Illinois is more affordable than the U.S. average, when measured as a ratio of average insurance expenditures to median household income.

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Illinois Storms Highlight Severe Weather Losses

Triple-I Legal System Abuse Awareness Campaign Enters California, Illinois

Illinois Lawmakers Reject Risk-Based Pricing Challenge

New Illinois Bills Would Harm — Not Help — Auto Policyholders

Auto Insurance, Insurers and the Economy, Market Conditions

Oil Prices Might Reduce
Accidents, But Severity Would Offset Impact

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By Jeff Dunsavage, Head of Research Publications and Insights, Triple-I

If oil prices continue to rise due to hostilities in the Middle East, fewer drivers on the road could lead to fewer accidents and insurance claims. However, increased severity – driven by rising replacement costs – would likely overwhelm any decrease in frequency over time, according to Patrick Schmid, Triple-I’s chief insurance officer.

“Even before the war, repair costs were rising more than twice as fast as general inflation,” Schmid said.  “From the supply-chain disruptions of COVID through the past year’s economic policy uncertainty with tariffs, as well as legal system abuse, upward pressure on claim costs has been unrelenting.”

Indeed, more costly gas might not affect driving as much as one might expect. According to the American Public Transportation Association, a 10 percent rise only reduces driving by 0.2 to 0.3 percent. Even if high prices continue, the average drop is just 1.1 to 1.5 percent.

“People still need to get to work and run their lives,” Schmid said. “Gas price alone isn’t enough to dramatically change that.”

Research shows wealthier drivers cut back on driving more than lower-income drivers – who tend to have fewer choices as to how they get to and from work – when gas gets expensive. Policyholders who can’t easily reduce their driving are often the ones with tighter budgets and older, less safe vehicles.

Oil prices don’t just affect how much people drive — they also flow through the entire repair supply chain. The cost of auto maintenance and repair climbed roughly 10 percent from 2023 to 2024 alone, a trend pushed higher by inflation and a shortage of skilled technicians.

What does this mean for policyholders?

The factors that influence premiums vary widely by state, and accident frequency is just one of them.  Louisiana – one of the least-affordable states – has recently seen declines in premiums as a result of both reduced frequency and severity.  

A major contributor to high premiums is the prevalence of fraud and legal system abuse in those states. States like Florida that have proactively sought to address these factors through legal system reforms, have begun to see rate declines. Since Florida’s reforms, nearly 20 new property insurers have entered the state and existing carriers have expanded their market share, driving renewed competition in the private market. This facilitated the lowest number of policies administered by Citizens Property Insurance Corp. – the state-run insurer of last resort – in over a decade.

“It’s encouraging to see other states beginning to follow Florida’s lead,” Schmid said. “It’s important for policymakers to follow successful examples.”

Learn More:

Lessons for Texas from Florida’s Legal System Reforms

Florida Premiums Drop Amid Post-Reform Stability

Uber Joins Effort to Drive Legal System Reform

Auto Premium Growth Slows as Policyholders Shop Around, Study Says

Even With Recent Rises, Auto Insurance Is More Affordable Than During Most of Century to Date

New York Among Least Affordable States for Auto Insurance

Louisiana Auto Insurance Rates Benefit from Declines in Frequency, Severity

Revealing Hidden Cost to Consumers of Auto Litigation Inflation

Uber Joins Effort to Drive Legal System Reform

Legal System Abuse, Artificial Intelligence Cloud 2026 Outlook

Triple-I Legal System Abuse Awareness Campaign Enters California, Illinois

Georgia Targets Legal System Abuse

Auto Insurance, Highway Safety, Theft

U.S. Vehicle Thefts Hit Lowest Level in Decades

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By Lewis Nibbelin, Research Writer, Triple-I

Vehicle thefts dropped 23 percent nationwide in 2025, marking the second consecutive year of historic declines, according to the latest analysis from the National Insurance Crime Bureau (NICB).

At 659,880 thefts, last year’s drop built on the momentum of a 17 percent decline in 2024, previously the largest decrease in total thefts in four decades. Several jurisdictions experienced even greater year-over-year decreases, with vehicle theft down by 39 percent in Washington, 35 percent in Colorado, and 34 percent in Puerto Rico.

“Coordinated prevention efforts by law enforcement, auto manufacturers, insurance companies, and the National Insurance Crime Bureau are having a major impact on vehicle thefts nationwide,” said NICB president and CEO David J. Glawe, adding that such efforts “remain key to protecting families, businesses, and communities nationwide.”

Vehicle thefts surged in 2020 to about one vehicle stolen every 36 seconds, fueled in part by shutdowns during the COVID-19 pandemic. Levels remained elevated into 2023, which recorded more than one million thefts as social media trends highlighting vehicle security system vulnerabilities gained traction.

Many trends targeted Kia and Hyundai models, comprising six of the ten most stolen vehicles that year. In response, both manufacturers began implementing stronger prevention measures and software updates, reducing their share of total thefts from 21 percent in 2023 to 14 percent in 2025.

Despite overall progress, vehicle theft across the U.S. still occurs every 48 seconds, the NICB reported. Urban communities are at greater risk, with more than one-third of thefts concentrated in the top ten metro areas in 2025. Accordingly, California – home to three of the top ten areas – recorded the highest number of vehicle thefts in 2025, contributing more than 20 percent of the nation’s total.

Beyond the direct financial cost of losing these assets, theft of vehicles or car components add upward pressure on auto insurance rates, particularly within areas known to be high-risk. The cost to repair and replace stolen vehicles is also rising, compounding a market already impacted by mounting fraud and legal system abuse across the country.

While systemic improvements have helped improve theft rates, vehicle owners must take steps to help mitigate their own risk. Triple-I recommends the following precautions:

  • Keep doors locked and windows shut anytime a vehicle is left unattended.
  • Hide valuables in the trunk to prevent creating an additional target on the vehicle.
  • Park in secure, highly trafficked, and well-lit areas. In public parking areas, stay as close as possible to guard booths or store entrances. Keep personal garages locked.
  • Consider anti-theft devices such as audible alarms and steering wheel locks. Many new cars include tracking devices, which can help locate a stolen vehicle, but these are also available for purchase and installation in older cars. Check with an insurance professional to learn how anti-theft devices can qualify policyholders for premium discounts.
  • Exploit vehicle identification (VIN) numbers. A number of law enforcement agencies and insurance databases can use a VIN number to make it harder for car thieves to sell a stolen car or its parts.

Staying protected through adequate insurance coverage is also essential. Policyholders with auto policies that meet state-required minimums may lack coverage for vehicle theft or damage from theft, which is typically provided through optional comprehensive insurance.

Auto Insurance, Coastal Property, Homeowners Insurance, Insurers and the Economy, Legal Environment

Florida Premiums Drop Amid Post-Reform Stability

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By Lewis Nibbelin, Research Writer, Triple-I

Legislative reforms to address claim fraud and legal system abuse in Florida have continued to help stabilize the state’s property/casualty insurance market, contributing to premium reductions for thousands of homeowners and drivers, according to the latest Triple-I Issues Brief.

Since the reforms, nearly 20 new property insurers have entered the state and existing carriers have expanded their market share, driving renewed competition in the private market. This shift facilitated the lowest number of policies administered by Citizens Property Insurance Corp. – the state-run insurer of last resort – in over a decade, after a 50 percent drop in policies in force from 2024.

Claims-related litigation has also plummeted, with insurance litigation filings down 23 percent year-over-year from 2023 to 2024. Filings then fell 25 percent during the first half of 2025, compared to the same period in 2024, and remain below pre-2018 levels, as reported by the state governor’s office.

Florida’s reforms were enacted in 2022 and 2023, at a time when the state accounted for 72 percent of the nation’s homeowners claim-related litigation but only 10 percent of homeowners claims. The disparity reflected escalating premium rates and a multi-year insurer exodus, steering state lawmakers toward litigation reforms that, among other things, curtailed one-way attorney fees and assignment of benefits (AOB) for property insurance claims.

Ongoing market momentum

The impact of the reforms is particularly evident in Florida’s auto insurance market, which recorded the lowest personal auto liability loss ratio in the nation – and the state’s lowest in 15 years – in 2025, at 52.5 percent, according to the OIR. The market’s physical damage loss ratio also fell to 49.5 percent, reflecting a steady decline from 112.0 percent in 2022.

Such stability produced extensive savings for Florida drivers in 2025, with the state’s top five auto insurance groups averaging a more than 6 percent rate reduction through mid-year, accounting for 78 percent of the state’s auto market. These reductions have increased to an average of 8 percent based on the most recent 2026 regulatory filings.

Homeowners are also experiencing relief after more than 185 residential filings for flat or decreased rates over the past two years, the OIR reported. Rate changes have continued to flatten in the state after years of tracking the upward trend of rates nationally.

Lower reinsurance costs factor into this finding, translating to a 10.7 percent price decrease overall on reinsurance in 2025, according to a Gallagher Re report on the sustained success of Florida’s reforms.

“Hurricanes Helene and Milton, two powerful and destructive storms that hit Florida in September-October 2024, also provided a useful – if unwanted – test case for the reforms’ efficacy,” the report added. “Many insurers ceded losses on layers below the state’s catastrophe fund, but despite this, there was more reinsurance capacity than expected available for these layers.”

Learn More:

Litigation Reform Works: Florida Auto Insurance Premium Rates Declining

Revealing Hidden Cost to Consumers of Auto Litigation Inflation

New Consumer Guide Highlights Economic Impact of Legal System Abuse and the Need for Reform

Disasters, Litigation Reshape Homeowners’ Insurance Affordability

Florida Senate Rejects Legal-Reform Challenge

Affordability, Auto Insurance, Insurers and the Economy, Legal Environment

Uber Joins Effort to Drive Legal System Reform

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By Lewis Nibbelin, Research Writer, Triple-I

Ridesharing platforms like Uber are as vulnerable as other businesses to the cost impacts of legal system abuse – costs that inevitably are passed along to their customers. The company reported a more than 50 percent increase in its ride insurance costs per trip in recent years, despite also recording a lower rate of overall crashes from 2017 to 2022.

Passengers see these costs reflected in trip prices, with insurance accounting for roughly 10 percent of the average rider fare nationwide, or as high as 47 percent in costlier areas like Los Angeles County.

“Insurance for us is the second-highest operating cost after payment to drivers,” said Adam Blinick, Uber’s senior director of public policy and communications, in a recent Executive Exchange interview with Triple-I CEO Sean Kevelighan. “It’s been a bit of a calling card to get more aggressive on litigation and being public about where we see the abuse.”

Coordinated attorney outreach helps fuel the trend. Among motor accident victims surveyed by Protecting American Consumers Together, attorneys contacted 92 percent after their accident, including 57 percent who reported they were contacted by more than one. Solicitation typically occurred within a week of the incident, or “before insurance can play a part in addressing someone’s concerns,” Blinick noted.

“This creates more avenues to push people into these mills and artificially inflate the value of claims,” he said.

Third-party litigation funders play a major role in recruiting claimants. Though lack of transparency surrounding the market conceals its true size, a recent report from the National Insurance Crime Bureau and 4WARN estimates third-party funders spent more than $380 million on online search ads alone between June 2024 and June 2025, with some engaging in brand impersonation and search engine manipulation to mislead consumers and extend litigation.

Research from Triple-I and the Casualty Actuarial Society (CAS) estimates excessive litigation added $231.6 billion to $281.2 billion in liability insurance losses from 2015 to 2024, a finding that economic inflation alone cannot explain. A separate Triple-I report on civil case filings reinforces the finding, revealing approximately $42.8 billion in excess litigation value from motor vehicle tort cases filed between 2014 and 2023 in the federal and state civil courts.

“That’s a drop in the bucket to the reality of the problem,” Kevelighan said, “because less than 10 percent of cases had judgments. Others were settled and we can’t necessarily track the settlement data.”

Blinick discussed how uninsured and underinsured motorist (UM/UIM) insurance limits can also attract high claim volumes and disputes, particularly for the rideshare industry. Multiple states require ridesharing businesses to pay $1 million or more for such coverage, with limits in New York set at $1.25 million. Though intended to provide relief for policyholders hit by UM or UIM, these requirements mean bad actors stand to win more from claims, incentivizing excessive lawsuits and fraud.

Staged crashes generate many such claims, with some schemes involving a network of rideshare passengers who are “tied to the law firm, the medical providers, the body shops, the lenders themselves… all across the board,” Blinick said.

He added that many offenders “are the same ones who are doing slip and fall claims and mass tort suits against cities and counties. They’re not picky in terms of who they’re going after. They’re going wherever the opportunity presents itself.”

A 2025 California law that went into effect this year aims to help mitigate fraud by reducing the rideshare industry’s UM/UIM coverage limits from $1 million to $300,000 per accident. Uber has also submitted a November 2026 ballot measure that would cap contingency fees and limit medical damages in vehicle accident cases within the state, as well as shown support for New York’s 2027 budget proposals to combat fraud and unnecessary litigation.

Learn More:

Triple-I Legal System Abuse Awareness Campaign Enters California, Illinois

New York Among Least Affordable States for Auto Insurance

Claims Severity Drives Liability Insurance Losses

Revealing Hidden Cost to Consumers of Auto Litigation Inflation

Litigation Reform Works: Florida Auto Insurance Premium Rates Declining

New Consumer Guide Highlights Economic Impact of Legal System Abuse and Need for Reform

IRC Report Reveals One in Three Drivers Were Either Uninsured or Underinsured in 2023