That title is not a misprint. Insurers want you to believe that, according to a recent article.
Most would conclude that as the auto industry boomed in 2015,breaking decades-old sales records, it would portend a positive trend for the auto-insurance industry. Not so.
According to the article 'Pure Premium Spread' - a measurement that looks at underlying profitability for the personal auto insurance industry, weakened to the lowest level in 15 years in the third quarter of 2015,says a Barclays analyst.
There are a few reasons for this drop-off, but they all boil down to one: The economy's stronger.
The more vehicles on the road, the more likely there will be collisions. More wrecks, more insurance claims. More claims, less profit for insurance companies.
Read the fascinating article here:
http://www.businessinsider.com/car-insurance-worst-time-in-15-years-2016-1
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