The cost of claims is rising for Allstate, according to a Wall Street Journal article titled “Increased Car Crashes Crunch Allstate Shares.”
Americans are apparently driving more, post-recession, resulting in more auto accidents. CEO Tom Wilson is quoted as saying,
“More miles driven, more cars on the road, more accidents,” Chief Executive Tom Wilson said in an interview late Monday. “This happens occasionally in the auto-insurance business: When you come out of a recession, people do drive more and have more accidents.”
Auto repair costs are also increasing due to “increasing vehicle complexity.”
Click on the link to read more about rising claims costs at Allstate.
