Berkshire Hathaway Reports GEICO Collision Claims Severity Up 19-20% in Second Quarter Compared to Last Year – Collision Week
Reports underwriting loss as higher used car prices and shortages of collision repair parts increase severity.
Berkshire Hathaway reported its second quarter 2022 earnings, including details about its GEICO subsidiary, the second largest private passenger auto insurer in the U.S. on August 6.
GEICO’s pre-tax underwriting loss in the first half of 2022 reflected increased claims severities, primarily due to significant cost inflation in automobile markets, which began to accelerate in the second half of 2021. According to the company, increases in used car prices are producing increased claims severities on total losses and shortages of car parts are contributing