NU Online News Service, April 6, 1:39 p.m. EDT
Despite continued increases in loss costs, the private passenger auto insurance industry should continue to remain profitable, benefiting from the weak economy, a financial analyst said.
Using data supplied by the Insurance Services Office Inc., Meyer Shields of Stifel Nicolaus in Baltimore said in an analyst's note that to counteract a 1 percent annual increase in loss costs, there is a decline in claim frequency, which has fallen to its lowest level since the first quarter of 2007. Lower repair and replacement costs are also moderating severity, he said.
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