Claims costs are higher for hybrid cars and SUVs than for non-hybrids, according to Mitchell International. In its Quarterly Feature of the Mitchell Industry Trends Report, Mitchell International says hybrids have higher collision claims frequencies and severity than non-hybrids.Overall, hybrids have a 6.5% higher average claim severity than gas powered vehicles, Greg Horn writes. The Honda Civic has a 6.9% higher severity than the gas-only version, while the Ford Escape hybrid generates a 9% higher average severity than the non-hybrid version. One reason for the higher frequency could be that hybrids are used in longer commutes, Kim Hazelbaker, senior vice president of the Highway Data Loss Institute says in the report. Additionally, mechanical labour charges for hybrids are higher, adding to the higher claim costs. Furthermore, alternate parts use in hybrids is lower than for a non-hybrid vehicle, Horn adds.
Coalition launches new cyber reinsurance product
Managing general agent Coalition announced the creation of its reinsurance intermediary, Coalition Re, which will provide capacity for cyber reinsurance treaties. The “active insurance provider” (which uses digital technology to help policyholders before, during and after an incident) will provide capacity for non-proportional cyber reinsurance treaties, says Coalition Re. It will also provide […]
By Alyssa DiSabatino | September 11, 2024
2 min read