A pandemic-related windfall for U.S. car insurers is diminishing as millions of vehicle owners are back on the nation’s roads again.
Car insurers’ second-quarter results will face tough comparisons with the year before, when carriers benefited from an unprecedented drop in miles and a steep decline in accident volume. Many Americans hunkered down in their homes in the second quarter 2020 as the nation weathered the early stages of the Covid-19 crisis.
However, the waning pandemic should lift year-over-year performance for the broader property-casualty insurance industry, analysts said.
The stage will be set Tuesday by Travelers Cos., one of the first of the big property-casualty insurers to report earnings for the quarter. It is a leading issuer of policies protecting small and midsize U.S. businesses, and is a top-10 seller of car insurance to individuals as measured by premium volume.
Accidents are on the rise from last year. Last week Progressive Corp. reported a 47% year-over-year second-quarter increase in accident volume as well as an 8% surge in claims costs.