Higher used car prices and parts shortages increasing costs of claims.
Berkshire Hathaway reported its third quarter 2022 earnings, including details about its GEICO subsidiary, the second largest private passenger auto insurer in the U.S. on November 5.
According to the company, GEICO’s pre-tax underwriting losses in 2022 reflected increased claims severities, primarily due to significant cost inflation in property and physical damage claims, which began to accelerate in the second half of 2021 and have continued through 2022.
Increases in used car prices have driven increased claims severities on total losses and shortages of car parts are contributing to
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