5 things every insurer needs to know. Read more: http://www.genre.com/knowledge/blog/five-intersections-wc-and-auto-collide-en.html

1. WHEN WORKERS’ COMPENSATION &
AUTO LIABILITY COLLIDE
5 things every insurer needs to know.

2. Economic Recovery
+
=
Low Gas Prices
More Vehicle Miles
Traveled (VMT)
PEOPLE ARE DRIVING MORE MILES.

3. Sources: http://www.verisk.com/verisk-review/summer-2016/auto-claims-frequency-severity-what-s-behind-the-rise.html;
U.S. Federal Highway Administration, Total Vehicle Miles Traveled, Moving 4-Quarter Average, Vehicle Miles Driven Represented in Trillions(T);
Texas A&M University study, “Traffic Gridlock Sets New Records for Traveler,” INRIX, 8/26/15; CNN Money; U.S. Energy Information Administration
2.94T
2.96T
2.98T
3.00T
3.02T
3.04T
3.06T
3.08T
3.10T
3.12T
3.14T
Q1 Q2 Q3 Q4
2006
Q1 Q2 Q3 Q4
2007
Q1 Q2 Q3 Q4
2008
Q1 Q2 Q3 Q4
2009
Q1 Q2 Q3 Q4
2010
Q1 Q2 Q3 Q4
2011
Q1 Q2 Q3 Q4
2012
Q1 Q2 Q3 Q4
2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4
2015
Q1
2016
MILESDRIVEN(4-QUARTERROLLINGAVERAGE) TOTAL VEHICLE MILES TRAVELED (VMT) USA
VMT increased 3% in
2015, which is above
the 37-year average of
2.5% (1990 – 2007)
Up 6.7%
since 2012
Gas prices high /
Stocks down
Economic
Recession

4. Your employees may be careful drivers,
but is the teen in the next lane?
DISTRACTED DRIVING IS ON THE RISE.

5. Sources: National Safety Council; Property Casualty 360
DISTRACTED DRIVING:
Teen Crashes All Crashes
60% 25%

6. Sources: AAA Foundation for Traffic Safety, “2015 Traffic Survey Culture Index,” February 2016;
http://www.verisk.com/verisk-review/summer-2016/auto-claims-frequency-severity-what-s-behind-the-rise.html
70%
42%
32%
31%
12%
8%
Talking while driving
Anytime
Often/Regularly
Reading texts or emails while driving
Sending messages while driving
RISE IN SMARTPHONE USE CAN BE LINKED
TO THE RISE IN AUTO CLAIMS

7. DUI doesn't just mean alcohol.
DRIVING WHILE DRUGGED OR DROWSY
IS AS BAD AS DRIVING DRUNK.

8. Source: Governors Highway Safety Study
DRUGGED DRIVING:
After fatal accidents, tests have shown more drivers were drugged than drunk!
42% 37%

9. Sources: Optum Workers’ Comp and Auto No-Fault Solutions, 2017; http://www.asam.org/docs/default-source/advocacy/opioid-addiction-disease-facts-figures.pdf;
IMS, National Prescription Audit (NPATM), 2012; http://www.narconon.org/blog/heroin-addiction/5-reasons-prescription-addiction-turns-to-heroin;
medicalmarijuana.procon.org; AAA Foundation
DRUGGED DRIVING:
Workers’ Comp prescriptions
are going down while
Auto No-Fault prescriptions
are going up 2X.
Heroin is cheaper than
prescription opioids –
a reason some
opioid users turn to it.
29 states have
legalized medical
marijuana.
Fatal crashes are 2X more
likely from legal marijuana –
Marijuana with opioids
presents an even greater risk.
More than 250M
prescriptions annually
in the U.S.
80% of the world’s
opioid prescriptions
are in the U.S.
Prescription

10. Sources: http://dui.drivinglaws.org/drink-table.php; AAA Foundation
DROWSY DRIVING:
CAUTIONfor night-shift
workers, first-responders, doctors,
nurses and truck drivers:
31% OF DRIVERS
admit recently driving when they
“could not keep their eyes open.”
STOP
Driving after 24 hours without sleep
mimics blood alcohol level of 0.1%.
It's like having 4-7 drinks!

11. For each 5 mph increase in a state's speed limit,
accident fatalities increase 4%.
20 states have increased
their maximum speed limits
since 2010.
HIGHER SPEED LIMITS DON’T HELP.
Source: Insurance Institute for Highway Safety

12. 85 mph
80 mph
MT
SD
TX
ID
WY
UT
NV
Source: AAA Foundation for Traffic Safety, “2015 Traffic Survey Culture Index,” February 2016
TOP SPEED LIMITS

13. Source: AAA Foundation for Traffic Safety, “2015 Traffic Survey Culture Index,” February 2016
DRIVERS ADMITTING TO RECENTLY DRIVING ON
A FREEWAY 15 MPH OVER SPEED LIMIT:
Often/RegularlyAnytime
15%48%

14. In Commercial Auto, 10 states have 62% higher loss ratios
than states with the best loss ratios.
SOME STATES HAVE WORSE
LOSS RATIOS THAN OTHERS.
70.5%
43.6%
AVG. LOSS RATIO
Worst
10 States
AVG. LOSS RATIO
Best
10 States
Source: http://www.naic.org/documents/cipr_events_safety_landscape_pres.pdf
62%gap

15. Alabama
Michigan
Florida
New York
Delaware
New Jersey
Georgia
Nevada
Louisiana
Texas
Sources: PCI, Fast Track Monitoring System, 4Q 2015; PCI and American Trucking Research Institute, “The Changing Auto Safety Landscape,” NAIC CIPR, 2016;
PCI, Fast Track Monitoring, 4Q 2016
Best Performing
Worst Performing
by Loss Ratio
MT
NE
IA
MN
VT
OR
WY
AK
HI
D.C.
NJ
DE
NV
LA
TX
GAAL
FL
MI
NY

16. Source: https://www.titlemax.com/media/worst-traffic-congestion.jpg
Alabama
Michigan
Florida
New York
Delaware
New Jersey
Georgia
Nevada
Louisiana
Texas
5 OF THOSE
WORST
PERFORMING
STATES HAVE THE
MOST CONGESTED
TRAFFIC.
Impacting
Personal Auto too!
MI
NY
TX
GA
FL

17. Source: PCI, Fast Track Monitoring System, 4Q 2015
5 OF THOSE
SAME STATES
HAVE SEEN
INCREASED
AUTO ACCIDENTS.
Alabama
Michigan
Florida
New York
Delaware
New Jersey
Georgia
Nevada
Louisiana
Texas
NV
LA
TX
GA
FL

18. For more information on this topic, please contact
your local Gen Re representative.
INSURERS NEED TO WATCH THE ROAD FOR WAYS
TO REDUCE AUTO CRASH FREQUENCY AND
SEVERITY AFFECTING WORKERS’ COMPENSATION.
© 2018 General Re Corporation. This presentation is based on Gen Re’s understanding of a number of external sources. It is intended to provide
background information for our clients and professional staff. It is time sensitive and may need to be revised and updated periodically.
Questions?
Call us