Auto Insurance Task Force HCR 47/SCR 55 of the 2018 Regular Session
State of the Automobile Insurance Market: Quick Facts (as of December 31, 2017): The voluntary market remains competitive but challenging for both private passenger auto (PPA) and commercial auto (CA). There is little competition for some commercial trucking programs, e.g. logging. The Greater New Orleans and Baton Rouge areas continue to pay the highest rates. Market-wide insurance premium increase for 2017: PPA 9.0% following 8.7% in 2016 CA 5.6% following 2.8% in 2016 In 2015, Louisiana ranked highest in PPA combined average cost of insurance at $1,405 for liability and physical damage coverages according to the most recent NAIC data.
Louisiana Department of Insurance Comparison of Requested Change (before action is taken) to Market Impact of Approved Changes All Filing Types - Private Passenger Automobile 10% 9% 8% 7% 6% The LIRC is abolished; all filings go to the LDI as of January 1, 2008 7.4% 6.0% 5.9% 8.7% 7.2% 8.9% 8.7% 8.1% 5% 5.0% 4.7% 5.5% 4% 3% 4.0% 3.0% 2.9% 2.8% 2.7% 3.4% 2% 1% 0% 1.8% 1.0% 0.9% 0.5% 0.2% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (JUL) Average Requested Change Market Impact of Approved Changes
Louisiana Department of Insurance Comparison of Requested Change (before action is taken) to Market Impact of Approved Changes All Filing Types - Commercial Automobile 16% 14% 13.3% 12% 10% 8% The LIRC is abolished; all filings go to the LDI as of January 1, 2008 7.5% 7.2% 8.0% 6% 5.1% 5.5% 5.8% 4% 2% 0% 1.7% 0.4% 0.4% 0.1% 3.1% 1.1% 1.5% 2.8% 2.0% 2.2% 3.2% 2.8% -2% -4% -0.7% -2.2% -2.4% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (JUL) Average Requested Change Market Impact of Approved Changes
Silver Medal Premiums $800 $700 $600 $500 $400 $300 $200 $100 $- 41.4% 30.4% 47.7% Liability Collision Comprehensive US Average LA Average 2 nd highest average overall premiums. 2 nd highest average collision premiums. 6 th highest average combined liability premiums. 8 th highest average comprehensive premiums.
Auto Insurance Rates by State for 2017 (Source Insure.com) 1 Michigan $2,394 2 Louisiana $1,921 3 Connecticut $1,897 4 Rhode Island $1,848 5 Florida $1,840 6 DC $1,696 7 California $1,673 8 Wyoming $1,538 9 Delaware $1,526 10 Texas $1,506 11 Oklahoma $1,476 12 Georgia $1,440 13 Arkansas $1,409 14 New Jersey $1,375 15 West Virginia $1,369 16 Kentucky $1,365 17 New York $1,352 18 Colorado $1,351 19 Arizona $1,348 20 Nevada $1,342 21 Maryland $1,327 22 Mississippi $1,326 Avg. National $1,318 23 Pennsylvania $1,313 24 Oregon $1,308 25 Hawaii $1,294 26 North Dakota $1,291 27 South Carolina $1,286 28 Massachusetts $1,242 29 Minnesota $1,241 30 Alabama $1,226 31 Montana $1,217 32 Washington $1,216 33 New Mexico $1,201 34 Kansas $1,192 35 Tennessee $1,186 36 Illinois $1,159 37 Wisconsin $1,154 38 Alaska $1,132 39 New Hampshire $1,124 40 Nebraska $1,112 41 Missouri $1,107 42 Utah $1,068 43 South Dakota $1,058 44 Virginia $1,040 45 Indiana $1,021 46 Iowa $1,017 47 North Carolina $1,010 48 Vermont $948 49 Idaho $942 50 Ohio $919 51 Maine $864
Top 10 Most Expensive and Least Expensive States for Automobile Insurance, 2014 (Source: NAIC) Rank Most expensive Average Rank Least expensive Average 1 New Jersey $1,263.67 1 Idaho $571.94 2 Michigan $1,227.36 2 Iowa $585.71 3 New York $1,205.03 3 South Dakota $601.33 4 Louisiana $1,192.92 4 Maine $606.90 5 District of Columbia $1,192.45 5 North Dakota $630.24 6 Florida $1,140.84 6 Indiana $642.19 7 Delaware $1,125.74 7 North Carolina $643.84 8 Rhode Island $1,106.08 8 Wisconsin $646.48 9 Massachusetts $1,035.52 9 Nebraska $662.83 10 Connecticut $1,031.70 10 Vermont $665.17
Top 10 Most Expensive and Least Expensive Cities for Auto Insurance, 2014 (Source: Nerdwallet) Rank Most expensive cities Average cost Rank Least expensive cities Average cost 1 Detroit, MI $10,723 1 Winston-Salem, NC $969 2 New Orleans, LA $4,310 2 Greensboro, NC $1,090 3 Grand Rapids, MI $4,042 3 Raleigh, NC $1,098 4 Newark, NJ $3,525 4 Durham, NC $1,101 5 Baton Rouge, LA $3,364 5 Charlotte, NC $1,123 6 Hialeah, FL $3,272 6 Boise, ID $1,222 7 Jersey City, NJ $3,267 7 Rochester, NY $1,249 8 Louisville, KY $3,256 8 Fayetteville, NC $1,295 9 Miami, FL $3,169 9 Spokane, WA $1,308 10 Philadelphia, PA $2,931 10 Montgomery, AL $1,376
Auto Loss Trends 4Q Moving Direct Loss Ratio 74.0% Frequency Severity Personal Commercial Average 2001-2016 72.0% 70.0% 68.0% 66.0% 64.0% 62.0% 60.0% 58.0% Quarter-Over- Quarter Year-Over-Year Quarter-Over- Quarter Year-Over-Year BI -0.90% -2.85% 2.2% 7.7% PD 0.15% 0.53% 0.9% 4.2% PIP -0.71% -0.42% 2.16% 3.25% COMP -0.75% -1.26% -0.19% 11.14% COLL 0.45% 2.11% -0.50% 2.07% Source: SNL Financial (S&P Global Market Intelligence) Source: ISS/NISS/ISO Personal Auto Fast Track Data 2017 Q2 3
Causes Solutions Urban Congestion & Road Conditions Infrastructure Investment Device Distractions Handheld Bans & Primary Enforcement Extreme Weather Events Weather Warning Systems Speed Limits Lower Speed Limits Impaired Driving Education & Enforcement Litigation Environment Tort Reform 4
Traffic Congestion Average Metropolitan Area Commute Time 90.0 Average Annual Delay (Hrs) per Auto Commuter 28 80.0 Minutes 27 26 25 24 23 70.0 60.0 50.0 40.0 30.0 20.0 10.0 22 LA US - 2008 2016 Baton Rouge New Orleans
Distracted Driving 6
Extreme Weather Events
Tort Environment Jury Trial Threshold $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 LA MD HI RI VA AL NH OK OR AK CT KY AR WV
Select 2018 Legislative Activity HB 619 by Huval to expand the distracted driving laws to all drivers and to make operating a handheld device unlawful. (Died in the Senate) HB 700 by McFarland to repeal and replace the seat belt gag rule to permit evidence of nonuse of seat belts for mitigation of damages. (Died in the Senate) HB 789 by Thibaut to limit the collateral source rule (Died in House Committee) SB 139 by Luneau to permit direct action in cases involving certain small businesses (Died in the Senate) SB 441 by Morrell to create the crime of reckless operation of an off-road vehicle. (Act 495)