CWI Underwriters Blog

Despite earlier studies done this year on declining claims being submitted, a recent study done by the Insurance Research Council (IRC) proves otherwise. While injury claim severity has been increasing steadily over the years, the number of claims had begun to decrease which caused some sort of stability. Now, with the continuing rise of claim severity, it is being followed by an equally prominent rise in claims submitted where states like Florida have risen 62% in PIP claims.

Countrywide from 2008 to 2010, the increase in PIP cost has been an 18% and while BI has been mitigated by reaching a stale point, it is the first time since 1994 that BI has no declined in the least. The states where PIP are the most resilient are in those that practice the NO-FAULT policy such as Florida, Michigan, and New York. Florida, as stated, has risen 62%, Michigan has risen 120% in the last decade, and New York has been on an emotional roller-coaster due to claim fraud.

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