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What you are saying, is that insurers are failing to control costs of repairs and passing it on to consumers to pay for with premiums. No different than what health insurers do... but I digress....
I said its a similar ratio to inflation that has been fairly consistent for the past 20-30 years.
Meaning actuaries should be able to account for it.
Especially for just an 8 year underwriting period.
To say that actuaries cant account for auto repair inflation over an average of 8 years, would be to ignore the facts.
Now there is a lot more that goes into auto insurance than just repair costs. But I was responding to a specific comment that pointed it out as a major reason why actuaries cant account for it....
To say that its some wild unknown that has no statistical data that actuaries can use to predict future pricing, is just plain wrong.
Interest rate impact, china tariffs impact, supply chain, labor. None of these issues are a surprise to economists. You cant honestly think they are a surprise to actuaries...
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